Mineral Resources Limited [ASX:MIN] is an Australian based mining service, contracting, processing, and commodities production company.
Founded in in 1993, its minerals producing market brands are Polaris Metals and Mesa Minerals.
The share price is up 4.13% for the day.
What has caused the increase?
There’s not one specific piece of news solely responsible for the sudden jump.
However, Mineral Resources did announce they will acquire the Australian assets of American miner, Cleveland-Cliffs Inc.
These include the Koolyanobbing iron ore project in Western Australia, and Cliffs’ infrastructure assets at the Port of Esperance, from where Mineral Resources will be able to export materials with larger, more cost-effective vessels.
The terms of the transactions are being kept quiet, however they thanked the WA Government for helping facilitate the deal.
What’s next for Mineral Resources?
Mining Resources recently lost a bidding war for the takeover of Altas Iron.
That’s a good thing.
After all, the company is, at its core, a mining services provider and contractor with iron ore crushing and processing capacity of 130 million tons a year for external customers.
People consider Mining Resources the golden standard of mining services and couldn’t make much sense of a bidding war, making the failed bid a blessing in disguise.
For Money Morning
PS: Our resource analyst Jason Stevenson has compiled ‘The Top 10 Australian Mining Stocks’ trading on the ASX right now. Want to find out which ones will benefit from the resurgence in commodity prices? Click here.