Energy and Resources News Round-Up: Dec 24 — Dec 31

Below are snapshots of the top energy and resources news stories that appeared over the Dec. 24–31 holiday period in Europe and the Middle East.

Mining giant Rio Tinto PLC. (RTP) continued to defend itself against an unsolicited offer from larger rival BHP Billiton Ltd. (BHP) on Thursday, Dec. 27, saying it had greater potential as a standalone company.

In a letter to shareholders that was posted on the Australian Securities Exchange, Rio Chairman Paul Skinner said the company’s outlook was "exceptional," spurred by rising demand for resources from developing countries.

"As you may be aware, BHP Billiton recently made an unsolicited approach to acquire Rio Tinto, which your board unanimously rejected as it significantly undervalued Rio Tinto and its prospects," Skinner said.

Russian aluminum giant UC Rusal said Tuesday, Dec. 25, that it intends to purchase an additional 2% in the world largest nickel producer, OAO Norilsk Nickel (GMKN.RS), from KM Invest. Rusal sent an official letter to the chief executive of KM Invest, the aluminum giant said in a statement.

On Dec. 19, the board of directors of KM Invest made the decision to sell up to 2% of its stake in Norilsk Nickel. KM Invest manages the joint assets of Interros partners Vladimir Potanin and Mikhail Prokhorov. The KM Invest board has approved the sale of one-quarter of KM Invest’s 8% holding Norilsk.

Rusal last Friday acquired a 25% plus one share stake in OAO Norilsk from Prokhorov. The market capitalization of Norilsk has risen 40% since the start of the year to about $40 billion.