It will be interesting to see what unfolds in this space also:
* Mvela/ENRC decline comment on report of possible takeover
* Mvela says will consider all sensible, strategic offers
By Eric Onstad LONDON, Jan 5 (Reuters) - South Africa's Mvelaphanda Resources Ltd (MVLJ.J) expects to draw bidders attracted by its huge platinum project, but declined to comment on a report that Kazakh group ENRC Plc (ENRC.L) made a takeover approach.
London-listed ENRC also declined on Tuesday to comment on a report on website Miningmx, which cited no sources, that said ENRC was holding talks with Mvela about a possible bid. An analyst said the report was credible.
Mvelaphanda -- a holding company which plans to delist and spin off stakes to shareholders -- has a market value of $1.43 billion.
Mvela's executive commercial manager, James Wellsted, declined to comment on the report about ENRC, but said interest was likely from potential bidders.
"There's clearly going to be some interest, whether it's from ENRC or another platinum producer, I'm sure people are looking at us," he told Reuters.
Mvelaphanda is a mining investment vehicle that owns stakes in several firms, including a 62.8 percent holding in South Africa's Northam Platinum Ltd. (NHMJ.J)
"There's been quite a significant change in the outlook for the PGM (platinum group metal) market -- the prices are a lot higher -- and obviously Northam and Booysendal offer a very attractive suite of assets."
HUGE PLATINUM PROJECT
Northam owns the Booysendal project, which is estimated to have resources of over 100 million ounces, making it one of the world's biggest undeveloped platinum deposits.
"We view the speculation as credible given ENRC has previously been linked to a bid for Northam Platinum, with any acquisition once again highlighting both the convergence of the FeCr (ferrochrome) and platinum industries," Liberum Capital said in note.
ENRC is one of the world's biggest producers of ferrochrome. Chrome ore is often found in the same deposits as PGMs or near PGM deposits.
Northam, which already produces about 300,000 ounces a year in PGMs from the world's deepest platinum mine, said in October it planned to launch construction at Booysendal this year. [ID:nL897276]
Wellsted said Mvela was pushing forward with plans to unbundle its assets to shareholders early this year, but would consider takeover offers.
"We will continue with our strategy... but at the same time, if someone comes and makes an offer that makes sense from a value and a strategic perspective for our shareholders then clearly we've got to look at that."
When ENRC agreed a $955 million cash deal to buy Central African Mining and Exploration Co (CAMEC) in September, it said it was looking for more takeovers. [ID:nL0211900]
ENRC's takeover of CAMEC marked its first foray into Africa and an ENRC official told Reuters that the group wanted to build a mining powerhouse along the lines of acquisitive Xstrata (XTA.L), but focus on higher risk emerging nations. [ID:nL8316877]
ENRC had gross available funds of $1.95 billion at the end of June 2009.
(Reporting by Eric Onstad; editing by Mike Nesbit, John Stonestreet)
NKP Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
