Gina gets serious with $390m bid

AUSTRALIA’S richest woman Gina Rinehart has moved to buy a junior iron ore miner outright for $390 million as a new wave of investment pours into the nation’s mining sector.

A company owned by the mining and agricultural magnate has launched an all-cash unconditional offer for Perthbased iron ore miner Atlas Iron.

The takeover offer is the latest twist in a fast-paced battle for Atlas which has pitted Mrs Rinehart against fellow mining billionaire Andrew Forrest and Perth-mining identity Chris Ellison who is the major shareholder in Mineral Resources.

Mrs Rinehart’s offer came as Rio Tinto said it would spend $2.9 billion on replacement mines at its Pilbara operations over the next three years.

It follows BHP and Fortescue signing off on $6.3 billion in new spending at their Pilbara operations over the past month as spending in the nation’s iron ore sector hits its highest levels since the peak of the mining boom.

Atlas yesterday said Redstone Corporation — a subsidiary of Mrs Rinehart’s Hancock Prospecting — had offered by buy all its shares for 4.2c each.

Mrs Rinehart grabbed a near 20 per cent stake in Atlas last week, paying 4.2c a share.

That move came after Fortescue grabbed a 19.9 per cent stake in Atlas earlier this month — paying 4c a share — in a deal which was viewed by market watchers as giving Mr Forrest a blocking stake.

Atlas was put into play in April when Mineral Resources offered to buy the loss-making miner in an all-scrip offer which valued the company at $280 million.

Fortescue has previously said it would not support the Mineral Resources offer — which values Atlas at about 3c a share — on its current terms.

Atlas said it would evaluate the Hancock offer and provide shareholders with a recommendation in due course.