Metorex could spend up to R1,45bn to restart production at n

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humpv

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Inscription: Sam 5 Sep 2009 19:42

Message Dim 16 Déc 2012 21:06

Metorex could spend up to R1,45bn to restart production at n

Metorex could spend up to R1,45bn to restart production at new DRC copper assets

The proposed acquisition of Copper Resource Corporation (CRC) would boost diversified miner Metorex’ yearly copper output by a further 42 000 t/y from two Democratic Republic of Congo (DRC) mines, CEO Charles Needham said on Thursday.But to move CRC’s Kinsenda and Mushoshi mines, which were both placed under care-and-maintenance, back into production, would cost Metorex between $160-million (about R1,16-billion) and $200-million (R1,45-billion), he added.Needham said in a presentation in Johannesburg that the company could either finance the costs through an equity issue in Miniere de Mushoshi et Kinsenda (MMK), project finance, or a prefinancing deal with an offtake party. He said that Metorex would avoid project finance at all cost, and that it was rather opting to seal a prefinancing deal.“One obtains a prefinancindrying iron ore mobile plantg from an offtake party so you commit your offtake to a trader, and they will prefinance it. That is our first choice,” he said.Metorex announced last month that it had agreed to acquire a 38,7% shareholding in CRC, and a 5% stake in MMK, a 75%-held subsidiary of CRC, from the Forrest group.CRC’s assets comprise the Kinsenda and Mushoshi mines and the Lumbembe copper deposit, in the DRC, rights to the Hinoba-An deposit in the Philippines, and the Haib copper resource in Namibia.Metorex said that it would adopt a phased approach,milling powder hand grinding machine with Kinsenda as its primary target, followed by exploration work on the Lubembe deposit, and a further review to re-establish Mushoshi.But, for the South African miner to complete the acquisition, it still had to make an offer to minority shareholders, obtain South African Reserve Bank (SARB) approval, and close a deal with an equity partner.Needham noted that the Reserve Bank approval would require a “high-level meeting”, as Metorex was acquiring a 38%, or up to 100%, stake in a foreign listed entity.The company warotary crusher for cement plants planning to acquire a 100% interest, delist CRC from the London Stock Exchange, and acquire a shareholding directly in MMK, which would give Metorex control over the assets.“We are explaining this to SARB and I have no doubt that we will have to explain it to the National Treasury. However, we were successful with our discussions with Pan African, and there is no reason to believe that we won’t be successful with these discussions,” he said.A minorities document was currently being prepared and would be distributed either later this month, or early next month.

FOCUS ON COPPER, but still diversified
With the acquisition of CRC, Metorex would further boost its copper production, and Needham said that copper was “certainly” the group’s focus at present, but added that it had not changed its policy to be a midtier multicommodity miner.“That [copper] is what has attracted our attention and that is what is in the DRC became available to ourselves,” he said, but noted that the company was increasingly moving into other commodities, such as zinc.Metorex was building a zinc plant in Zambia to produce in the order of 5 000 t/y of zinc, and Needham said that it was also looking at some zinc depostis in that country.“Provided the commodity is of a high grade, we will look at any commodity.”However, Needham added that the copper price was not likely to “come off in a hurry”, as the world supply-demand was currently almost in balance and that major expansion would not be able to meet the current demand for the metal.He explained that the world supply-demand was almost in balance at around 18-million tons a year, and that world economic growth of between 3% and 5%, would require an additional 600 000 t to one-million tons a year of extra copper, and that it was unlikely for the additional tonnages to come on stream in the short term.“The DRC is really a casing point. It takes 18 months to get financing in place, 18 months to two years to get plant in place and then start mining. So the major copper expansion in DRC in our view, is a minimum of three years away,” Needham said.

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By Vens Yang – December 1, 2012
Les LT vaincront !
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Laf1986

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Inscription: Jeu 30 Juil 2009 19:54

Message Dim 16 Déc 2012 21:11

Re: Metorex could spend up to R1,45bn to restart production

ZCCM-IH ne possède malheureusement pas des parts dans Metorex mais Chibuluma
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humpv

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Inscription: Sam 5 Sep 2009 19:42

Message Dim 16 Déc 2012 21:16

Re: Metorex could spend up to R1,45bn to restart production

oui j'ai vu juste après avoir posté...
Les LT vaincront !

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