Sorry if already posted. SYDNEY--Singapore-based commodities...

Sorry if already posted.

SYDNEY--Singapore-based commodities trader Noble Group Ltd. (N21.SG) is weighing a bid
for Western Desert Resources Ltd. (WDR.AU), in what would be one of the biggest deals for
an Australian iron ore miner since prices of the steelmaking material weakened last year,
according to people familiar with the matter.
The move underscores how traders like Noble are taking advantage of falling stock
prices to buy resources that can be developed for sale to clients directly, taking an
opposite approach to major miners that are reining in spending to focus on lifting
shareholder returns. Recent investments by global trading companies range from industrial
minerals like coal and iron ore to agricultural commodities like grains.
A deal for Western Desert Resources, which has a market value of 235 million Australian
dollars (US$218 million), would cement Noble's position in the fledgling iron ore
industry in the Northern Territory, a sparsely populated area of Australia that's
been lightly explored for resources up to now.
In 2011, Noble trumped an offer from South Africa's Exxaro Resources Ltd. (EXX.JO)
to acquire Territory Resources Ltd. for A$133 million to secure ownership of an iron ore
mine about 200 kilometers south of Darwin, the territory's capital.
The Northern Territory has fewer resources than neighboring Western Australia state,
which produces 40% of the world's iron ore traded by sea. But the territory also has
also fewer infrastructure bottlenecks, particularly on its rail network and at ports,
which makes it attractive to companies like Noble that are looking to bring new mines
into production quickly.
Western Desert Resources said in a statement Thursday it has held talks with parties
over a takeover, but it hadn't received a binding bid. It didn't identify those
parties.
Last September, China's Meijin Energy Group made a A$434 million offer for the
company but walked away only weeks later without citing a reason.
Western Desert Resources expects to begin production of iron ore from its Roper Bar
mine late this year, with material hauled via a 162-kilometer road to the port of Bing
Bong for export. It has 600 million metric tons of iron ore at Roper Bar, but this
resource is likely to rise as more exploration takes place, the company said in a recent
presentation.
Western Desert Resources said Thursday it has agreed key terms for the sale of iron ore
from the Roper Bar mine to a global company, which it didn't identify.
A binding agreement still needs to be negotiated. Two of the parties that held talks
over offtake with Western Desert Resources were Trafigura Beheer BV and Noble, according
to one of the people.
Trafigura, through its oil unit Puma Energy, has been active in Australia lately. It
made three acquisitions in the first two months of the year, including retail and
wholesale oil distributor Ausfuel for more than A$625 million.