WMC Resources

WMC Resources Limited was an Australian diversified mining and fertiliser company that was listed on the Australian Stock Exchange. WMC was an acronym for Western Mining Corporation. It was delisted on 29 June 2005 following a successful takeover by BHP Billiton. It was founded in 1933 as a gold miner. When it was taken over it had three main businesses:
History.
Western Mining Corporation (WMC) was formed in 1933, when WS Robinson, the Australian-born London-based managing director of Broken Hill Associated Smelters, was able to interest several large London-based mining companies into forming syndicates to develop gold mines in Australia. WMC's strategy was to use the newly emerging sciences of mining geology and related geochemistry and geophysics to find new gold deposits. It was a company based on the idea that if they applied good science to exploration, they would be successful.
WMC began operations in Western Australia in December 1933 when it commenced an extensive aerial survey of the Eastern Goldfields. It acquired its first profitable mining operation in June 1935 when it took an option over a new gold discovery at Cox's Find, 43 miles northwest of Laverton.
WMC pioneered district-scale aerial photography in the 1930s, flying many areas in West Australia's gold-mining districts. The hope was to identify new prospective areas near known mines. Unfortunately, the surveys failed due to poor exposures of the rocks in the nearly flat, deeply-weathered areas they flew.
The company's final corporate structure before takeover was formed in 2003 by a demerger that split off the aluminium operations to form Alumina Limited, separate from what was to be known as WMC Resources Limited (with a separate ASX code of WMR).
In 2003, the company made a profit of A$245 million, on assets of approximately A$4000 million.
The last chief executive officer of the independent company was Andrew Michelmore, and the board was chaired by Tommie Bergman. Executive Directors included Mr Michelmore and Alan Dundas. A notable previous CEO, from 1990 to 2003, was Hugh Morgan, a politically vocal CEO who spoke out about the power of trade unions, criticised the Mabo decision and native title more generally, and supported a number of other right-wing causes. Most influentially, Morgan was a member of the "greenhouse mafia," central to the campaign to prevent the Federal Government ratifying the Kyoto Protocol, or taking actions to cut emissions (in collaboration with Ray Evans, WMC Executive Officer, 1982-2001).
Takeover bids.
In December 2004, Swiss mining company Xstrata announced a takeover offer for the company. In February 2005, the WMC board recommended that shareholders reject the offer. The government did not object to the takeover through the Foreign Investment Review Board, however a number of people (including members of the Government) expressed concerns due to the economic (and strategic) importance of the Olympic Dam resources, and the reputation of Xstrata and its major shareholder, Glencore.
The Xstrata takeover offer lapsed after a higher offer was made by BHP Billiton, with support from the WMC Resources board. On 3 June 2005, about 6 hours before the BHP Billiton takeover offer was due to close, it was announced that 55% of the shares had accepted the offer. Under the Corporations Act 2001 this automatically extended the offer period by another 14 days to 17 June. BHP Billiton had gained control of the company. On the afternoon of 17 June 2005, BHP Billiton announced that it had achieved 90.5% ownership, and would proceed to acquire the remaining shares.
The takeover was similar to the takeover of North Limited in 2001. Both were subjects of bidding wars and both were large and diversified resource companies with one special world class asset that attracted attention from across the world. In the case of North, that special asset was Robe River Iron, while for Western Mining it was the Olympic Dam copper, gold and uranium deposit.
As a result of the takeover, most of the board and the CEO resigned, and were replaced by BHP Billiton appointees. BHP Billiton Executive Director Mike Salamon took over the position of Chairman of the board, and Chris Campbell took over as interim CEO. The company name has been replaced by the BHP Billiton corporate identity, and a significant name in Australian mining history ceased to be used.