urg:::WMC-v-Roxby's Greatest Hits

[Gavin Mudd]

Burgess says hasn't ruled out merger of WMC Resources

Source: AAP | Published: Tuesday June 18, 1:35 PM


WMC Ltd chairman Ian Burgess today said he hadn't ruled out the possibility
of the company's expected standalone resource unit merging with other
resource interests.

"We haven't ruled out mergers" for the company's WMC Resources Ltd business,
Mr Burgess said in response to a shareholder question at the company's
annual general meeting.

"The first step is to demerge and we'll then see what happens," he said.

Later this year WMC will put a plan to shareholders to split the company's
alumina assets from its nickle, copper and fertilisers business.

Earlier Mr Burgess argued the demerger was in the best interests of
shareholders and would realise the full value of WMC.

- AAP


Copyright © 2002. Sydney Morning Herald. All rights reserved.

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WMC signs of support from institutional investors for demerger

Source: AAP | Published: Tuesday June 18, 1:40 PM


WMC Ltd chief executive officer Hugh Morgan today said there were strong
indications of support from the resource company's institutional
shareholders for this year's planned demerger.

Speaking to journalists after the company's annual general meeting in
Melbourne, Mr Morgan said the vote for the demerger would be as early as
October, although it may take place in November.

"The indications we've had (are of) strong support for the position that's
been adopted by the board," Mr Morgan said.

He said he has visited the company's institutional shareholders since the
plan was first mooted last year.

When asked if the support was enough to see the proposal being approved by
shareholders, Mr Morgan replied: "I have no doubt about it".

But he cautioned things may change between now and the time of the vote.

After an informal takeover offer by USgiant Alcoa, WMC proposed a split of
its assets which would pool its nickle, copper and fertiliser units into a
separate company from its alumina holdings.

Mr Morgan also said a conceptual study was currently underway, exploring the
option of boosting annual production from its Olympic Dam operation to more
than 600,000 tonnes of refined copper.

However, he said this project was at an early stage, adding market support
would be needed before WMC embarked on such an ambitious project.

Olympic Dam current produces about 200,000 tonnes of copper annually and
under current plans WMC hopes to boost this to 235,000 tonnes.

Mr Morgan reiterated a refit of the Olympic Dam solvent extraction plant
would cost less than $200 million with the project scheduled to be finalised
by the end of March 2003.

- AAP


Copyright © 2002. Sydney Morning Herald. All rights reserved.

--------------------------->

WMC plans for Olympic growth
By SEAN SMITH
19jun02


WMC is thinking big even as it plans to get smaller, by expanding the
parameters of a possible mega-expansion of its Olympic Dam copper-uranium
mine.

Meeting small shareholders yesterday for the first time since announcing its
demerger in November, the group revealed that it is now mulling a
near-tripling of the prized South Australia project.

When it first spoke publicly about its expansion study last August, it
flagged a possible doubling in production from about 235,000 tonnes of
refined copper to between 400,000 and 500,000 tonnes, mostly likely in four
to 10 years.

Now it is talking 600,000 tonnes "and higher" in a major "step change" which
would transform the remote Olympic Dam into the world's biggest underground
producer of copper - at a cost of billions of dollars.

However, WMC's long-term chief executive, Hugh Morgan, said yesterday the
group would first need to find buyers for the increased production of
uranium oxide which would accompany the copper.

"We will have to find markets for that, and those markets we would really
need to have lined up, maybe not in a contractual term, but have confidence
about, before making a commitment," Mr Morgan said.

Yesterday's annual meeting had been expected to provide shareholders with an
opportunity to grill the board on its plan to hive off WMC's alumina assets
into a separate company, Alumina Ltd.

But the 400 small shareholders in attendance seemed generally accepting of
the scheme, which is likely to go to the vote at a meeting in October, and
Mr Morgan added later that institutional investors had voiced strong
support.

He had "no doubt" those expressions of support were enough to get the plan
over the line, but cautioned: "Who knows what may happen before the
meeting."

The demerger was drawn up after WMC rebuffed a confidential proposal by its
alumina partner, Alcoa, to offer $10.20 a share for the Australian company.

WMC believes the split will generate greater value for shareholders.

It insists the demerger is not aimed at "creating vehicles for takeover".

Chairman Ian Burgess admitted yesterday Alcoa was the most likely owner of
Alumina Ltd, which will hold WMC's 40 per cent stake in the highly
profitable AWAC alumina and chemicals joint venture with the US giant.

Framed by a backdrop of a slide which insisted "Alcoa has not and will not
go away," Mr Burgess said Alcoa "remains vitally interested in our 40 per
cent share".

WMC shares yesterday closed 2c higher at $9.16.


© News Limited 2002 - www.heraldsun.news.com.au

--------------------------->

Digging deep for triple treat
By SEAN SMITH in Melbourne
19jun02


WMC is thinking big even as it plans to get smaller, expanding the
parameters of a possible mega-expansion of its Olympic Dam copper-uranium
mine.

Meeting small shareholders for the first time yesterday since announcing its
demerger in November, the group said it was now investigating the potential
to triple the size of the South Australian project.

When it first spoke publicly about its expansion study last year, it flagged
a possible doubling in annual production to more than 400,000 tonnes, likely
in four to 10 years.

Now it is talking 600,000 tonnes "and higher" in a move that would transform
Olympic Dam into the world's biggest underground producer of copper and cost
billions of dollars. However, WMC's long-term chief executive, Hugh Morgan,
said yesterday the group would first need to find buyers for the increased
production of uranium oxide which would accompany the copper.

"We will have to find markets for that, and those markets we would really
need to have lined up, maybe not in a contractual term, but have confidence
about, before making a commitment," Mr Morgan said.

Yesterday's annual meeting had been expected to provide shareholders with an
opportunity to grill the board on its plan to hive off WMC's alumina assets
into a separate company, Alumina Ltd.

But the 400 small shareholders in attendance seemed generally accepting of
the scheme, which is likely to go to the vote in October, and Mr Morgan
added later that institutional investors had voiced strong support.

He had "no doubt" those expressions of support were enough to get the plan
over the line, but cautioned: "Who knows what may happen before the
meeting."

The demerger was drawn up after WMC rebuffed a confidential proposal by its
alumina partner, Alcoa, to offer $10.20 a share for the Australian company.

WMC believes the split will generate greater value for shareholders.

But while it insists the demerger was not aimed at "creating vehicles for
takeover", it concedes Alumina Ltd and the rebadged WMC Resources may be
quickly picked off by bigger rivals.

Chairman Ian Burgess said Alcoa was the most likely owner of Alumina Ltd,
which would hold WMC's 40 per cent stake in the highly profitable alumina
and chemicals AWAC joint venture with the US giant. Framed by a backdrop of
a slide which insisted "Alcoa has not and will not go away," Mr Burgess said
Alcoa "remains vitally interested in our 40 per cent share".

WMC deferred a vote on the scheme in April to await federal legislation
expected to reduce taxes associated with the deal. The legislation is likely
to be passed in August or September.

WMC shares yesterday closed 2c higher at $9.16, well south of Alcoa's
proposed offer price of $10.20 and even further off the $11.18 to $12.91 a
share at which independent expert Grant Samuel valued the company.


© News Limited 2002 - www.theadvertiser.news.com.au

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Posted :Tue, 18 Jun 2002 14:51 AEST

WMC chief tips demerger


Chief Executive of mining company WMC, Hugh Morgan, remains confident
shareholders will support a demerger plan.

Mr Morgan outlined plans for dividing the company at WMC's annual general
meeting in Melbourne today.

The demerger will see it split into an alumina company and a diversified
minerals business.

Mr Morgan expects shareholders to vote on the plan later this year, pending
the passing of new tax legislation through Parliament.

He assured shareholders a demerger was in the best interests of both the
company and shareholders.

"I believe WMC Resources and Alumina Limited will be attractive investment
opportunities," he said.

"They will be two sizeable resource companies trading on the Australian
Stock Exchange Top 50, they will generate strong cash flows and high return
opportunities, they also have sound balance sheets."


© 2002 Australian Broadcasting Corporation

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WMC says cautiously optimistic about metals outlook

Source: AAP | Published: Tuesday June 18, 1:36 PM


Diversified resource major WMC Ltd today issued an upbeat outlook on global
economic growth adding it was cautiously optimistic about metals prices.

Addressing shareholders at the company's annual general meeting, chief
executive officer Hugh Morgan also outlined details of the company's plan to
split its alumina assets from the rest of the company's operations.

"I am cautiously optimistic about the metals market in which these companies
will start trading," Mr Morgan said.

"There is clear evidence that the economic recovery has started and we can
see the effect in metal prices, which are coming off a cyclical low."

Over the longer term, Mr Morgan said that once current inventories are
cleared he believes world commodity supply would be insufficient to meet the
anticipated growth in demand.

"Both companies are strongly positioned to take advantage of improving
prices," he said.

Mr Morgan said the demerger proposal, which was initially flagged late last
year, had not distracted the management from the day to day business of
running the company well.

He said by creating two separate companies a diversified minerals business
and a single alumina company the market will be able to fully value these
assets on their performance and growth potential.

"Feedback from the investment market over recent months indicates strong
interest in both stocks," he said.

WMC chairman Ian Burgess said the company was waiting until the federal
government passes new legislation providing demerger tax relief before it
puts the proposal to shareholders.

He said he believed it was in the shareholders' best interest to temporarily
delay the process until the demerger legislation passes through parliament.

>From recent government announcements, WMC expects the legislation to be
tabled in parliament some time towards the end of the month.

"While we can not determine the parliamentary process, our expectation is
that the legislation will be passed sometime during August or September with
the general meeting (for shareholders) approximately six weeks later," he
said.

- AAP


Copyright © 2002. Sydney Morning Herald. All rights reserved.

--------------------------->

Posted: Sun, 16 Jun 2002 18:05 ACST

Conference calls for greater govt support for mining works


The annual Australasian Institute of Mining and Metallurgy congress has been
told the industry is picking up.

The three-day conference of 50 representatives from Australia and New
Zealand finished in Darwin today.

Chief executive officer Don Larkin says the congress was used to discuss
globalisation of the industry, pressure for sustainable development and
mergers and aquisitions.

He says Government support could help boost mining works in the Territory.

"The Territory used to have a lot more members, for example, in the AusIMM
than they have now," he said.

"The number of companies is reducing significantly, the amount of
exploration has significantly reduced and but... it is starting to turn
around so we need the state governments and the territory governments to
work with the Federal Government... on access to land."

As part of the mining congress, an awards dinner was held last night.

The prestigious Institute Medal was awarded to Western Mining Corporation's
chief executive officer Hugh Morgan.

Mr Morgan's father also won the medal 30 years ago, working for the same
company.

WMC is an Australian company with large-scale mining operations.

Mr Morgan says the corporation has no current Territory interests, but small
operations like many of the Territory's have an important role in the
industry.

"Smaller mines in this context doesn't mean they're not important," he said.

"They might be quite rich, they can certainly make a great contribution,
they may even turn out to be very big mines in the future.

"The industry certainly wants to promote smaller mines and the
entrepreneurial skill, which is absolutely vital to the continuing discovery
of big ore bodies as well."


© 2002 Australian Broadcasting Corporation