Metorex to sell Sable to Glencore for $33.5 mln

[LesCrozes]

UPDATE 2-Metorex to sell Sable to Glencore for $33.5 mln
Wed Jun 8, 2011 10:51am GMT

* Sable sale a condition of Vale takeover approach
* To distribute proceeds to shareholders

(Adds NUM comments on Vale takeover bid for Metorex)

JOHANNESBURG, June 8 (Reuters) - South African miner Metorex (MTXJ.J: Quote) said on Wednesday it would sell its interest in Sable Zinc Kabwe to Glencore (GLEN.L: Quote) for 225 million rand ($33.5 million).

The sale is one of the conditions attached to a takeover offer for Metorex by Brazilian mining group Vale (VALE5.SA: Quote), which bid $1.1 billion for the South African company in a move to tap into its copper and cobalt operations in Africa. [ID:nLDE7371CP]

But South Africa's National Union of Mineworkers said it was against Vale's takeover bid for Metorex.

"We are opposed to this because they (Vale) are an anti-union company ... We will be petitioning the competition commission," NUM General Secretary Frans Baleni told a news briefing.

Sable Zinc, based in Zambia, purchases third party ores and produces copper cathode and cobalt concentrate.

Metorex said the purchase price for Sable equity was 190 million rand, but the company would advance a loan to Sable of 35 million rand, raising the total price to 225 million.

Should the sale be successful, Metorex plans to distribute the proceeds to its shareholders and to holders of options to subscribe for Metorex shares who accept Vale's takeover offer. ($1=6.719 Rand) (Reporting by Agnieszka Flak and Ed Stoddard, editing by Olivia Kumwenda and Hans Peters)