Consolidated Minerals says it is set to embark on a significant new chapter in its history as a diversified resources group after announcing plans to accelerate its growth strategy as an unlisted company – with the backing of its new owner, Palmary Enterprises. Underpinned by its existing manganese, chromite and nickel businesses – and now with the backing of a major international commodities and raw materials group – Consolidated said it would pursue a growth strategy through a combination of acquisitions and expansion of its manganese and nickel businesses.
“Following a very positive and productive series of meetings with Palmary’s senior management team led by owner Gennadiy Bogolyubov, I am pleased to confirm that Palmary has given its strong support and backing to the core elements of our existing growth and development strategy,” said Consolidated’s Managing Director, Rod Baxter. “The key difference is that this strategy will now be accelerated and significantly expanded thanks to the global networks, extensive asset base and greatly expanded range of opportunities that Palmary brings to the table. This will entail both vending in assets from Palmary’s global portfolio and pursuing new acquisition opportunities in Australia and internationally.
“Our shared vision is to continue to build Consolidated into a leading global diversified mining house to take advantage of what we see as a sustained period of strong demand and growth in global commodity markets, with a view to potentially re-listing in the medium term,” Baxter continued. “With the backing of a supportive, progressive and strategic shareholder – who brings tremendous growth opportunities – we will effectively be able to accelerate our growth strategy, opening up exciting career pathways for our employees both in Australia and overseas.
“This outcome is particularly exciting for Consolidated’s existing employees, as Bogolyubov believes that the current management team and employee base is a key to the successful implementation of our shared plans to build a leading international mining group. Bogolyubov was impressed by what he saw at our operations during last week’s site visit, and he has confirmed that all existing employees will be retained and that the company will continue to operate in Perth to remain close to its current major assets in Western Australia.
“This signals the beginning of an exciting new era for Consolidated, and I am looking forward to working closely with Bogolyubov, Palmary and all the members of our existing team towards delivering our vision to build a world-class diversified resources group,” Baxter said.
Having acquired in excess of 90% of Consolidated’s shares when its off-market takeover offer of A$5.00 per share closed on January 8, Palmary is compulsorily acquiring the remaining securities in the company. As a result, Consolidated’s securities will be suspended from quotation on the Australian Securities Exchange and the company’s admission on the Alternative Investment Market (AIM) of the London Stock Exchange will be cancelled.
Notwithstanding that it will no longer be listed on the ASX and AIM, Consolidated says it will continue to maintain the highest standards and disciplines with regard to its approach to corporate governance, social responsibility and disclosure. “We will continue to be a values-driven company, with safety and high performance foremost among our values,” Baxter said. “We will continue to work closely with all our stakeholders to maintain mutually beneficial relationships.”
International Mining’s February issue, currently at the printers, includes an article on Consolidated’s Beta Hunt nickel mine in Western Australia.