Europe

The UK’s BG Group has approved its biggest ever investment, a £9.3 billion liquefied natural gas (LNG) development in north-east Australia.

Following environmental approvals from the Australian government, the company will now proceed with the first phase of the project—to build a liquefaction plant on Curtis Island, Queensland.

The project will also involve construction of a 540 kilometre pipeline to move gas from the Queensland interior, where the gas will be drilled using 6,000 bore holes, to the liquefaction plant.

Poland’s Kulczyk Holding has been selected for exclusive talks to buy the state’s 51 per cent in Enea, the country’s third largest power generator.

The decision means that France’s GDF Suez is now out of the running to buy the utility.

Kulczyk will have until November 3 to negotiate the purchase of the government’s shares, worth more than five billion zlotys (approximately €1.2 billion).

Kulczyk Holding has emphasised that, if successful, it hopes to build a private Polish energy company around Enea.

Oil giant Royal Dutch Shell has posted a 6.5 per cent rise in third quarter net profits on the back of higher oil and gas prices.

Net profits rose to $3.46 billion, up from $3.25 billion a year earlier. Group revenues were $90.71 billion, compared with $75.01 billion the previous year.

Due to new field start-ups, total oil and gas production rose by five per cent to 3.058 million barrels of oil equivalent per day, beating analysts’ expectations of a 3.4 per cent rise.

By focusing on the potential to develop near-future zinc resources in Poland combined with the potential for new discoveries in Ireland, Rathdowney Resources has created an attractive package for investors. CEO John Barry explained the strategy to John O’Hanlon.

The challenging task of bringing mining projects to fruition isn’t just a question of solving engineering projects, as Alan Swaby learns.

They say that what doesn’t kill us makes us stronger. On that basis, the guys at the Chelopech Mine in Bulgaria must be feeling on top of the world.

The saying “Go West, young man” has been a part of our language for over 150 years; and while its origins may have referred to America’s growing empire, the idea has been followed to the letter by one gold mining company, as Andrew Pelis discovers.

For the past 16 years, Avocet Mining Plc has had its focus on South East Asia, firstly mining tungsten and latterly, gold. However, a major refocus is now underway that has indeed seen the company go west—specifically, to West Africa.

ArcelorMittal, the world's biggest steel company, has reported a profits rise of 48 per cent in the three months to the end of September compared with the same period a year earlier.

Net profit for the third quarter was $1.35 billion (approximately €978 million), up from $910 million (approx. €660 million) a year earlier.

Sales also increased, by 30 per cent against the previous year.

Demand for steel demand has once again been rising, though it still remains below pre-crisis levels.

Birmingham, UK-based engineering group IMI is to spend €135 million (£120 million) to acquire German industrial valve maker Zimmermann & Jansen.

Zimmermann & Jansen (Z&J), which has manufacturing facilities in Germany, US and South Africa, as well as a sales and purchasing office in China, specialises in the manufacture of heavy-duty valves used in the petrochemical, iron and steel markets.

Z&J also has a strong aftermarket business, with around two thirds of its sales coming from refurbishment, replacement, parts and service.

Spain’s Ferrovial plans to sell a 10 per cent stake in BAA, the owner of London’s Heathrow airport, to pay off debt and fund other projects.

In 2006 the Madrid-based infrastructure group led a consortium that acquired BAA for €16 billion (£14.2 billion), as part of a plan to expand its activities beyond construction.

Ferrovial will now reduce its 55.9 per cent stake in the UK business, but will still remain the largest shareholder.