US updatePublished by MAC on 2007-09-10
10th September 2007
Recently, this site began spotlighting moves made by so-called hedge funds and private equity (aka venture capital) into major mining companies and projects. What distinguishes these plays from previous takeovers in the industry (with the notable exception of Glencore's buy-ins and buy-outs) is the threat they pose to democratic shareholder control, minimal though that may seem.
Last week, the state of Nevada over-rode environmentalist objections to the opening of new coal-fired power, one of which is controlled by a private equity fund.
Soon afterwards, the Woodlark/Cempaka gold project in Indonesia was bought from Gem Diamonds by an Australian private equity company, Pacific Road Resources, in partnership with the investment arm of a South African merchant bank.
One of the principals of the Pacific Road Resources private equity fund is David Klingner; until recently, a director of Rio Tinto and former manager of the Kaltim Prima coal mine in Indonesian East Kalimantan