latest iron ore producer

Territory seeks acquisitions, ramps up iron ore production
30th November 2007, 17:30 WST


Territory Resources Ltd has vowed to pursue fresh acquisition opportunities despite backing out of the takeover battle for fellow diversified miner Consolidated Minerals Ltd just two months ago.
“Our growth strategy is based on exploration excellence and pursuit of targeted merger and acquisition opportunities to broaden the company’s commodity and production base,� Territory chairman Michael Kiernan told the company’s annual general meeting today in Perth.

“The future strategic direction of the company ... is to develop as a diversified carbon steel material producer, with the target of becoming a $2.5 billion carbon steel supply business.�

As part of this goal, Territory took part in the ongoing takeover battle for diversified miner Consolidated Minerals Ltd (ConsMin) earlier this year - but conceded defeat in early September.

“While Territory ultimately withdrew our bid for CSM (Consolidated Minerals) as the increase in share price exceeded our financial hurdles of return on investment and positive earnings per share, the company will continue to pursue acquisition opportunities where they meet our strategic and financial criteria,� Mr Kiernan said.

Yesterday, Territory became a major shareholder in multi-commodity explorer Northern Mining Ltd, acquiring 15.7 per cent of the company’s issued capital.

Earlier this month, it acquired almost 14 per cent of the issued capital of minerals sands explorer Olympia Resources Ltd.

By December next year, Territory aims to be producing at a rate of three million tonnes a year of iron ore at its flagship Frances Creek operation in the Northern Territory.

By next month, it expects to have shipped 350,000 tonnes of high-grade hematite iron ore, up from its previous estimate of 267,500 tonnes for the 2007 calendar year.

Its first, 67,500-tonne shipment of iron ore left the Port of Darwin, bound for Asian markets, in October.

“This was a significant milestone, delivered on schedule and on budget,� Mr Kiernan said.

“By year’s end, we will have had five boats out totalling 350,000 tonnes of product. An absolutely fabulous achievement.�

Former Territory managing director Douglas Stewart - who retired from this role in July and was instrumental in bringing the Frances Creek mine to production - was today appointed as a non executive director of multi-commodity explorer Conquest Mining NL.