ninemsn

'Strong interest' in CopperCo assets
18/12/2008 7:19:05 PM
Corporate recovery experts Ferrier Hodgson say they have receive significant expressions of interest for the acquisition of copper miner CopperCo Ltd, which went into receivership last month.

Ferrier Hodgson also said on Thursday that it had appointed independent adviser and investment house Gresham Advisory Partners Ltd to assist in the assessment of potential buyers.

American mining magnate Robert Friedland's Ivanhoe Australia Ltd recently indicated it was running the ruler over CopperCo's assets.

Ferrier Hodgson partner Darren Weaver said several of the approaches centred on CopperCo's Lady Annie mine near Mount Isa in Queensland.

"This unsolicited interest is a reflection of the positive view that is held as to the value of the project as a whole," Mr Weaver said.

Mr Weaver said expressions of interest extended to the assets of platinum-focused Mineral Securities Ltd, which merged with CopperCo in October.

Ferrier Hodgson said the asset sales would commence early next year.

CopperCo's collapse was a surprise to the market, despite the global financial, because its mining assets were considered to be robust.

Analysts say the company came undone due to negative provisional pricing adjustments that took account of the falling metal price.

CopperCo sold copper to a smelter at the London Metal Exchange cash settlement price but paid up front as the product left the mine.

The price was adjusted many weeks later when the product arrived at the smelter, by which point the copper price had substantially fallen.

The metal has been one of the worst performing commodities this year