WMC Resources

WMC Resources was a major Australian diversified mining company and the final corporate successor to Western Mining Corporation, commonly known as WMC. Its origins lay in an exploration venture established in 1933 by William Robinson and several London-based mining interests. The company was founded around the belief that systematic application of geology, geochemistry, geophysics and aerial surveying could improve the discovery of Australian mineral deposits. It began work in Western Australia in December 1933, initially concentrating on the Eastern Goldfields, and secured its first profitable mining interest at Cox's Find near Laverton in 1935. Over the following decades, WMC developed from a gold-exploration enterprise into a broad-based resources group. Its former portfolio included gold mines such as Agnew, Beta Hunt, Burbanks, Hill 50, Norseman and St Ives, as well as the Nifty copper mine and Three Springs operations. The company also became involved in aluminium through its investment in Alcoa World Alumina & Chemicals, a holding that increased from 20 percent to 40 percent. In the later stages of its independent existence, WMC's most strategically important businesses were nickel, copper-uranium-gold and phosphate fertiliser production. Immediately before its takeover, WMC Resources operated the Mount Keith and Leinster nickel mines, the Kambalda nickel concentrator, the Kalgoorlie nickel smelter and the Kwinana nickel refinery in Western Australia. Its Olympic Dam operation in South Australia was a large polymetallic mine producing copper, uranium and gold. Olympic Dam was particularly significant because of the scale of its uranium resource and its combination of several metals in one orebody. WMC also operated the Phosphate Hill mine and related fertiliser activities in Queensland, together with the Hi Fert blending and distribution network serving eastern Australia. A major corporate restructuring occurred in 2002, when WMC separated its aluminium interests into the Alumina business. The remaining company was reorganised under the WMC Resources name, leaving it focused on mining and mineral processing rather than the former broader aluminium structure. This demerger created the corporate form that was later targeted by competing takeover bidders. WMC's independent existence ended in a contested takeover in 2005. Xstrata announced an offer in December 2004, but WMC's board recommended that shareholders reject it in February 2005. The offer attracted public and political attention because of Olympic Dam's strategic importance and the identity of Xstrata's major shareholder, Glencore. BHP Billiton subsequently made a higher offer supported by the WMC board. By June 2005, BHP Billiton had obtained more than 90 percent of WMC's shares and proceeded with compulsory acquisition of the remaining shares. WMC was removed from the Australian Securities Exchange on 29 June 2005, and its corporate identity was subsequently absorbed into BHP Billiton. Several assets were later divested by BHP Billiton, including the Hi Fert business and Southern Cross Fertilisers.

Western Mining Corporation was formed in 1933 after William Robinson, then an Australian-born mining executive based in London, brought together several London mining interests to investigate and develop gold deposits in Australia. The company was established during a period when new scientific approaches to mineral exploration were becoming increasingly important. WMC's founding premise was that disciplined use of mining geology, geochemistry and geophysics could identify deposits more effectively than reliance on informal prospecting alone. Operations began in Western Australia in December 1933 with an extensive aerial survey of the Eastern Goldfields. WMC was an early user of district-scale aerial photography as an exploration tool and surveyed areas around established gold districts in the hope of locating extensions or new targets. The approach had limited success in some areas because the flat terrain, deep weathering and poor rock exposure made geological interpretation difficult. Nevertheless, the company's exploration-led identity became central to its development. In June 1935, WMC acquired an option over the Cox's Find gold discovery, approximately 43 miles northwest of Laverton, providing its first profitable mining operation. The company gradually expanded beyond gold and became one of Australia's significant diversified resource groups. Its former gold portfolio included the Agnew, Beta Hunt, Burbanks, Hill 50, Norseman and St Ives mines. It also operated or held interests in other mineral assets, including the Nifty copper mine and Three Springs. The expansion reflected a broader strategy of combining exploration, mining, concentrating, smelting, refining and downstream mineral processing. In 1961, WMC acquired a 20 percent interest in Alcoa World Alumina & Chemicals. That holding later rose to 40 percent and gave the company substantial exposure to the aluminium and alumina industry. The aluminium interests were ultimately separated from the mining businesses in a 2002 demerger that created Alumina as a distinct entity. The residual company adopted the WMC Resources name and entered its final phase as a mining-focused business. By the time of its takeover, WMC Resources had three principal operating groupings. Its Western Australian nickel business included the Mount Keith and Leinster mines, the Kambalda nickel concentrator, the Kalgoorlie nickel smelter and the Kwinana nickel refinery. In South Australia, Olympic Dam combined copper, uranium and gold production. The operation was strategically important because of the size of its uranium resource; contemporary descriptions estimated that it represented approximately one-third of the world's known uranium reserves in 2005. In Queensland, WMC operated the Phosphate Hill mine and related phosphate fertiliser production, together with the Hi Fert blending and distribution network serving eastern Australian markets. The company's final years were dominated by takeover activity. Xstrata announced a bid in December 2004, but the WMC board recommended that shareholders reject it in February 2005. Although the Australian Competition and Consumer Commission and the Foreign Investment Review Board approved the transaction, the proposal generated political and public concern because Olympic Dam was regarded as economically and strategically important. A higher offer from BHP Billiton, supported by the WMC board, displaced Xstrata's proposal. When BHP Billiton's offer closed on 3 June 2005, it held 55 percent of WMC's shares. The offer period was automatically extended under the Corporations Act 2001, and BHP Billiton announced on 17 June that it owned 90.5 percent and would compulsorily acquire the balance. WMC Resources was delisted from the Australian Securities Exchange on 29 June 2005. Its name subsequently disappeared into the BHP Billiton corporate identity, ending the company's independent history. BHP Billiton later sold several inherited fertiliser assets, including Hi Fert in December 2005 and Southern Cross Fertilisers in May 2006.

• 2005

  BHP Billiton completes takeover

  [1]WMC Resourcesen.wikipedia.org

  BHP Billiton obtained more than 90 percent of WMC Resources and proceeded to compulsorily acquire the remaining shares.

• 2005

  WMC Resources is delisted

  [1]WMC Resourcesen.wikipedia.org

  The company was delisted from the Australian Securities Exchange on 29 June.

• 2004

  Xstrata launches takeover bid

  [1]WMC Resourcesen.wikipedia.org

  Xstrata announced an offer for WMC Resources in December.

• 2002

  Aluminium interests separated

  [1]WMC Resourcesen.wikipedia.org

  A demerger separated the aluminium operations into Alumina, leaving WMC Resources as the mining-focused successor.

• 1961

  Investment in Alcoa World Alumina & Chemicals

  [1]WMC Resourcesen.wikipedia.org

  WMC acquired a 20 percent interest in Alcoa World Alumina & Chemicals, later increasing the holding to 40 percent.

• 1935

  First profitable mining interest

  [1]WMC Resourcesen.wikipedia.org

  The company took an option over the Cox's Find gold discovery northwest of Laverton.

• 1933

  Western Mining Corporation is formed

  [1]WMC Resourcesen.wikipedia.org

  William Robinson helped assemble London-based mining interests into a company intended to apply modern geological and geophysical science to Australian mineral exploration.

• 1933

  Exploration begins in Western Australia

  [1]WMC Resourcesen.wikipedia.org

  WMC began operations with an extensive aerial survey of Western Australia's Eastern Goldfields.

Large Australian diversified mining and mineral-processing company with a portfolio spanning base metals, precious metals, uranium and fertiliser inputs.

• Copper, uranium and gold mining

  Olympic Dam

  Olympic Dam was WMC Resources' flagship polymetallic operation in South Australia. It produced copper, uranium and gold from a single large mineralised system, making it strategically important both for its copper output and for the scale of its uranium resource. The operation was among the company's defining assets at the time of the BHP Billiton takeover.

• Nickel mining and processing

  Western Australian nickel operations

  WMC's nickel division included the Mount Keith and Leinster mines, the Kambalda concentrator, the Kalgoorlie smelter and the Kwinana refinery. The integrated structure covered mining, concentration, smelting and refining, giving the company a substantial presence across the nickel value chain in Western Australia.

• Phosphate mining and fertiliser production

  Phosphate Hill and Southern Cross Fertilisers

  The Queensland phosphate business included the Phosphate Hill mine and associated fertiliser production. Following the takeover, this business became known as Southern Cross Fertilisers. It was subsequently sold by BHP Billiton to Incitec Pivot in 2006.

• Gold mining

  Gold operations

  WMC's historical gold portfolio included the Agnew, Beta Hunt, Burbanks, Hill 50, Norseman and St Ives mines. Gold was central to the company's early exploration identity, although the portfolio became more diversified as WMC expanded into nickel, copper, uranium and fertiliser-related minerals.

• Copper mining

  Nifty Copper Mine

  Nifty was among WMC Resources' former copper assets and reflected the company's expansion beyond its original gold focus. It was part of the broader portfolio of Australian mining operations associated with WMC before the 2005 takeover.

• 2005

  Support BHP Billiton's takeover offerM&A

  Background

  Xstrata had made an earlier offer, but WMC Resources' board recommended that shareholders reject it. BHP Billiton then presented a higher proposal.

  Action taken

  The WMC board supported BHP Billiton's higher offer, which ultimately secured more than 90 percent of the company's shares.

  Aftermath

  WMC Resources was compulsorily acquired, delisted from the Australian Securities Exchange and absorbed into BHP Billiton.

  • Xstrata — Xstrata's offer lapsed after BHP Billiton made a higher bid.

  Source

• 2002

  Separate the aluminium business through a demergerStrategy

  Background

  WMC's aluminium interests had become a substantial part of the wider group through its holding in Alcoa World Alumina & Chemicals.

  Action taken

  The company separated its aluminium operations into Alumina, leaving the remaining mining activities under the WMC Resources identity.

  Aftermath

  The restructuring established the corporate form that was later acquired by BHP Billiton.

  Source

• 2006

  BHP Billiton sells Southern Cross Fertilisers[1]WMC Resourcesen.wikipedia.org

  M&A

  BHP Billiton sold Southern Cross Fertilisers, the fertiliser business associated with WMC's Phosphate Hill operations, to Incitec Pivot in May 2006.

• 2005

  WMC board recommends rejection of Xstrata offer[1]WMC Resourcesen.wikipedia.org

  M&A

  In February 2005, the WMC Resources board advised shareholders not to accept Xstrata's takeover proposal. Regulatory approvals were obtained, but the bid was overtaken by a higher offer from BHP Billiton.

• 2005

  BHP Billiton gains control of WMC Resources[1]WMC Resourcesen.wikipedia.org

  M&A

  BHP Billiton's higher takeover offer became successful in June 2005. It held 55 percent when the offer initially closed on 3 June and announced ownership of 90.5 percent by 17 June, enabling compulsory acquisition of the remaining shares.

• 2005

  WMC Resources delisted from the Australian Securities Exchange[1]WMC Resourcesen.wikipedia.org

  M&A · Other

  Following BHP Billiton's acquisition, WMC Resources was delisted from the Australian Securities Exchange on 29 June 2005 and its name was subsequently absorbed into the BHP Billiton corporate structure.

• 2005

  BHP Billiton sells Hi Fert[1]WMC Resourcesen.wikipedia.org

  M&A

  After acquiring WMC Resources, BHP Billiton sold the Hi Fert blending and distribution business to a joint venture involving Elders and AWB in December 2005.

• 2004

  Xstrata announces takeover offer for WMC Resources[1]WMC Resourcesen.wikipedia.org

  M&A

  Xstrata launched a takeover bid for WMC Resources in December 2004, beginning a competitive process for control of the Australian mining company.

1. 1WMC Resourcesen.wikipedia.org