ENRC to make £584m offer for Camec

18th September 2009 By: Mariaan Webb - Creamer Media Deputy Editor Online

JOHANNESBURG (miningweekly.com) - Kazakhstan-focused Eurasian Natural Resources Corporation (ENRC) will make £584-million cash offer for Central African Mining & Exploration Company (Camec), it said on Friday.

ENRC, which will offer 20p in cash for each Camec share, said that the deal would add copper to its portfolio, giving it access to Camec's copper/cobalt resources in the Democratic Republic of Congo (DRC).

According to the Camec website, the group has a production capacity of 30 000 t of copper cathode and 8 000 t of cobalt concentrate metal contained, which, dependent on demand, could be raised to between 100 000 t and 12 000 t respectively, during 2010/11.

ENRC CEO Felix Vulis described Camec's assets as "attractive" and said that the company would fit well with ENRC's growth ambitions.

"Camec offers all of our key requirements, including scale and scalable assets, low-cost and extensive growth opportunities," he said in a statement.

The directors of Camec intend to "unanimously" recommend the offer to its shareholders.

Camec CEO Andrew Groves said that the group viewed the offer to be "fair and reasonable".

Besides the copper and cobalt projects in the DRC, Camec also has coal, platinum and bauxite projects.

The group plans to start building a platinum mine in Zimbabwe this year. The Bokai mine is expected to produce 163 000 oz/y of platinum-group metals in concentrate over a 20-year life-of-mine. Production is likely to start by 2012.