Andrew Forrest and Mozambican greenfield tenements

The Chairman of TON, Chris Catlow, was CFO and Director in the early stages of Fortescue Metals Group (FMG) and worked there for 7 years.

The SMH/AGE article below (March 2, 2015) has the following quote:

"Citing the malaise in commodity prices and the availability of cheap debt, Mr Forrest said the time was right to begin work on the next generation of mining projects in Australia, and he vowed to build a new venture with many of the people who were involved in the early stages of his most successful venture, Fortescue Metals Group".

".... Mr Forrest said he wanted to pursue new opportunities in other minerals and energy commodities".

"We are looking to create world-leading mining operations from areas and geology previously thought unable to support investment. Our willingness to support new technology, innovation and leadership unlocks great potential in abandoned or unexplored greenfield tenements," he said in a statement.

With recent discussion (@Pauldola) of Forrest setting up a company in Mozambique to explore/develop the next generation of mining projects, I'll bet Mr Catlow would have a very good understanding of what Andrew Forrest was looking to invest in in Mozambique.

A cornerstone investment in TON is not too far off the mark I would suggest.   

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Andrew Forrest pursues new opportunities in minerals and energy commodities

Date March 2, 2015

Peter Ker
Resources reporter


Mr Forrest said the time was right to begin work on the next generation of mining projects in Australia. Photo: Ryan Stuart

Andrew "Twiggy" Forrest has called the bottom of the cycle for minerals development, and vowed to create a new venture to collect abandoned and undeveloped mineral projects across Australia.

Citing the malaise in commodity prices and the availability of cheap debt, Mr Forrest said the time was right to begin work on the next generation of mining projects in Australia, and he vowed to build a new venture with many of the people who were involved in the early stages of his most successful venture, Fortescue Metals Group.

But some believe there are ulterior motives behind the new venture, which appears likely to play a role in the battle to control mineral tenements over Mr Forrest's private station at Minderoo, in the Pilbara.

Despite still serving as chairman of Fortescue and holding a 33 per cent stake in the iron ore miner, Mr Forrest said he wanted to pursue new opportunities in other minerals and energy commodities.

"We are looking to create world-leading mining operations from areas and geology previously thought unable to support investment. Our willingness to support new technology, innovation and leadership unlocks great potential in abandoned or unexplored greenfield tenements," he said in a statement.  

"The mining cycle appears to be reaching a generational low ebb with a depressed commodity market and cheap capital available. We are taking a counter-cyclical and long-term view with the aim of creating jobs across the country."

Ranked seventh on the BRW Rich List with an estimated wealth of $5.86 billion, Mr Forrest has recently been accused of using his companies, or having companies owned by associates, take possession of the tenements near Minderoo in a bid to prevent others from pushing ahead with mining on the site.

Some believe the new venture will take possession of tenements that associates of Mr Forrest have recently obtained near Minderoo.

In a statement issued by Mr Forrest's private company, Minderoo Group, there was a clear reference to the saga, which has seen rival miners like Tony Sage's Cauldron Energy seek to develop the tenements around Minderoo.

"A further governance standard [for the new venture] will be the continuance of Mr Forrest's philosophy of not commencing a mining operation without independent expert assurance that the environment will be returned to at least its former state," the statement said.

"It is this philosophy that led Mr Forrest to oppose certain operations on his own pastoral properties while supporting others who gave such assurances. While much publicised in this case, opposition of mining tenements due to environmental concerns is allowed under the Mining Act and common among landowners who otherwise welcome co-investment on the land."

When asked if he thought Mr Forrest's new venture was designed solely to protect Minderoo, Mr Sage said he was inclined to take Mr Forrest on his word.

"If it is just stuck on Minderoo then I would have suspicions ... but if it is all around Australia then I think he is genuine. My flagship company, Cape Lambert Resources, does the same thing; we are looking at about 12 different projects right at this minute while the prices are so low," he said.

"Someone like Andrew with the great wealth he has accumulated is thinking five to 10 years out, and there will be a recovery – everyone knows that – it is just when it will start, and I don't think it will start for another 18 months."

The new venture comes after Mr Forrest recently stepped up his exposure to the agricultural sector by spending close to $40 million on a Western Australian beef producer in 2014.

The new venture is said to be already running the ruler over targets and is expected to focus on metals, potentially including copper, gold or nickel.

It will include some of the original Fortescue team, including John Clout, who was head of resource strategy at Fortescue between 2004 and 2010, and has also worked with Gina Rinehart's Roy Hill and the CSIRO.

Diversification into new commodities has been a growing dilemma for Fortescue as iron ore markets have cooled over recent years, and Fortescue executives are well aware of Mr Forrest's new play.

Mr Forrest vowed that his new venture would not interfere with Fortescue's current or future strategies.

"A process has been put in place to ensure that if any possibility of doubt regarding conflicting interest arises, the matter will be resolved independently and quickly. I have written to the FMG board asking them to approve this process, and they have returned with their full support for our venture and its governance procedures," he said.

Fortescue has toyed with investing in oil and gas in Western Australia and has also set up a holding company in Mozambique to explore mineral opportunities in Africa, but the company is still effectively an iron ore pure-play.

Mr Forrest is not the only former mining boss to have started searching for new opportunities amid the industry downturn.

Former Xstrata boss Mick Davis has reportedly raised more than $US4 billion for his new venture, X2, while former

Barrick Gold chief executive Aaron Regent has set up Magris Resources, which recently made its first investment in a rare earths and niobium mine in Quebec.

Both men are trying to seize upon an era in which assets are being divested by major miners in a bid to bolster sliding revenues.

Mr Forrest is expected to explain more about his new venture at a conference in Canberra on Tuesday, where he is scheduled to speak about "waterproofing Australia".

Mr Forrest owns 33.32 per cent of Fortescue, 27.27 per cent of uranium aspirant Vimy Resources and about 19 per cent of nickel developer Poseidon Nickel.

http://www.smh.com.au/business/andr...s-and-energy-commodities-20150301-13rxlm.html

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Please DYOR.