Minara CEO: No Guarantee of Higher Glencore Bid

There is no assurance that Glencore International PLC (GLEN.LN) will lift its takeover offer that values Australian nickel producer Minara Resources Ltd. (MRE.AU) at A$1.02 billion, target company Chief Executive Peter Johnston said Wednesday.

Minara shares have traded at a premium to Glencore's 87 cents-a-share offer since the U.K.-listed miner made its bid on Aug. 24, suggesting investors expect improved terms from Glencore.

"I think that's maybe their expectation, but there is no guarantee at all and people have to talk to Glencore on that," Johnson told reporters at a function in Perth.

"We do not talk to Glencore about the bid price at all," he said, adding that Minara's official target statement is due out "within two weeks".

Minara's independent directors have advised shareholders to take no action on the bid ahead of the target statement. Glencore already owns 73.4% of Minara.

Minara shares closed down 0.5 cents Wednesday at 87.5 cents.

Earlier, Johnston reiterated the mining industry's opposition to the Australian government's proposed carbon tax, due to come into effect next July.

The tax will have a "severe impact on Minara right from day one", he said.

If the government's publicly-discussed tax rate of A$23 per tonne is applied and concessions are not available, Minara would face an extra tax bill in the first year of around A$7.8 million, Johnston said.

Minara exports finished nickel products from its 60%-owned Murrin Murrin nickel mine in Western Australia.

Glencore owns the other 40%.

-By Stephen Bell, contributing to Dow Jones Newswires; 61-8-9244-4243; [e-mail]