WMC Resources

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For other uses, see Western Mining (disambiguation).
WMC Resources
Now a subsidiary of BHP Billiton
Industry Mining
Founded London, 1933
Products nickel, copper, uranium
Revenue A$1273 million (2004)
Number of employees
 4,863 (2005)
Website http://www.wmc.com/

WMC Resources Limited was an Australian diversified mining and fertilizer company formerly listed on the Australian Stock Exchange. WMC was an acronym for Western Mining Corporation. It was delisted on 29 June 2005 following a successful takeover by BHP Billiton. Originally founded in 1933 as a gold miner, at takeover it had three main businesses:

  • A nickel mining and processing business in Western Australia.
  • A copper and uranium mine at Olympic Dam in South Australia. In 2005, this mine was estimated to contain 33% of the world's known uranium reserves.[1]
  • A fertilizer production business in Queensland, which became known as Southern Cross Fertilisers following the BHP Billiton takeover; as well as Hi Fert, a blending and distribution network supporting Australia's eastern states. BHP Billiton sold Southern Cross Fertilisers to Incitec Pivot Limited in May 2006 and Hi Fert to a joint venture of Elders and AWB on 5 December 2005.[2]

History

Western Mining Corporation (WMC) was formed on 2 March 1933, during the Great Depression, when WS Robinson, the Australian-born London-based Managing Director of Broken Hill Associated Smelters, was able to interest several large London-based mining companies into forming syndicates to develop gold mines in Australia.[3]

WMC began operations in Western Australia in December 1933 when it commenced an extensive aerial survey of the Eastern Goldfields. It acquired its first profitable mining operation in June 1935 when it took an option over a new gold discovery at Cox's Find, 43 miles northwest of Laverton.[4]

The company's final corporate structure before takeover was formed in 2003 by a demerger that split off the aluminium operations to form Alumina Limited, separate from what was to be known as WMC Resources (with a separate ASX code of WMR).

In 2003, the company made a profit of A$245 million, on assets of approximately A$4000 million.

The last Chief Executive Officer of the independent company was Andrew Michelmore, and the board was chaired by Tommie Bergman. Executive Directors included Mr Michelmore and Alan Dundas. A notable previous CEO, from 1990 to 2003, was Hugh Morgan, a politically vocal CEO who spoke out about the power of trade unions, criticised the Mabo decision and native title more generally, and supported a number of other right-wing causes. Most influentially, Morgan was a member of the "greenhouse mafia," central to the campaign to prevent the Federal Government ratifying the Kyoto Protocol, or taking actions to cut emissions[5] (in collaboration with Ray Evans, WMC Executive Officer, 1982-2001).

Takeover bids

In December 2004, Xstrata, a Swiss mining company, announced a takeover offer for the company. In February 2005, the WMC board recommended that shareholders reject the offer. The government did not object to the takeover through the Foreign Investment Review Board, however a number of people (including members of the Government) expressed concerns due to the economic (and strategic) importance of the Olympic Dam resources, and the reputation of Xstrata and its major shareholder, Glencore.

The Xstrata takeover offer lapsed after a higher offer was made by BHP Billiton, with support from the WMC Resources board. On the afternoon of 3 June 2005, about 6 hours before the BHP Billiton takeover offer was due to close, it was announced that 55% of the shares had accepted the offer. This automatically (according to Australian Corporations law) extended the offer period by another 14 days to 17 June. BHP Billiton had gained control of the company.[6] On the afternoon of 17 June 2005, BHP Billiton announced that it had achieved 90.5% ownership, and would proceed to compulsory acquire the remaining shares.

As a result of the takeover, most of the board and the CEO resigned, to be replaced by BHP Billiton appointees. BHP Billiton Executive Director Mike Salamon took over the position of Chairman of the board, and Chris Campbell took over as interim CEO. Subsequently, the company name has been replaced by the BHP Billiton corporate identity, and a significant name in Australian mining history ceased to be used.[7]

References

  1. ↑ [1] Archived May 25, 2005 at the Wayback Machine
  2. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ BHP Billiton Wins Control of WMC With A$9.2 Bln Bid (Update4)
  7. ↑ End of the line for WMC

External links

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