Minmetals still acquisition hungryColin JacobySource:...

Minmetals still acquisition hungry
Colin Jacoby
Source: Miningnews.net
Friday, 30 September 2011

HOT on the heels of announcing a friendly $A1.3 billion bid for Congo-focused copper miner Anvil Mining, Minmetals says it will run the ruler over future merger and acquisition opportunities in a bid to become a mid-tier producer.

During a teleconference this afternoon, Minmetals chief financial officer David Lamont said the company would consider more M&A deals in the $1-6.5 billion range, with the market downturn opening the door to future opportunities.

Minmetals is hoping to become a mid-tier producer in three to five years time.

Earlier today Minmetals Resources said it would fork out $C8 ($A1.04) per share for Anvil under the friendly takeover bid, which represents a 39% premium to Anvil’s last traded price on the Toronto Stock Exchange.

During the teleconference, Lamont said Anvil was an attractive fit with Minmetals’ strategy to grow its upstream base metals business.

Minmetals believes Anvil’s flagship Kinsevere copper mine in the Democratic Republic of the Congo provides it with access to the 450 kilometre Katanga copper belt stretching across Zambia and into the DRC and which contains more than a tenth of the world’s copper deposits.

The company said Anvil would materially increase its copper exposure by 60,000 tonnes per annum and boost its copper reserves by more than 75%, and generate strong margins at current prices.

Lamont also said Minmetal’s experience with the Sepon copper mine in Laos would assist in the ramp up of the Kinsevere mine.

The offer is subject to the approval of Minmetals shareholders, and the company has also sought approval from the Australian Foreign Investment Review Board for the acquisition.

Earlier this year Minmetals Resources’ $6.3 billion bid for copper miner Equinox Minerals was trumped by Barrick Gold.