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Anglo kicked tyres at $424m Katanga project Posted: Tue, 02 Oct 2007 [miningmx.com] -- KATANGA Mining, which is developing one of the largest copper mining projects in the Democratic Republic of Congo, had hosted visits by major mining companies including Anglo American, CEO Arthur Ditto said on Tuesday. Asked during a media visit to the Kamoto project if Anglo American had been to the project, Ditto said: “Yes, we’ve had several major mining companies come here.” He declined to say if there had been any repeat visit citing confidentiality agreements. Anglo American was recently linked to Katanga's project following a more aggressive approach to acquisitions by Cynthia Carroll, the group's new CEO since March. On May 2, Anglo swooped on Peru’s Michiquillay copper project for $403m, a mere week after agreeing to pay $1.5bn to take a 49% stake in MMX Minas Rio, which owns the iron ore project in the Minas Gerais state in Brazil. The recent announcement it would sell more than half its stake in AngloGold Ashanti for net $2.9bn has also raised the prospect it could help wipe out $5bn in debt and provide further ammunition for other projects or acquisitions. Another company, Nikanor, has also been connected with Katanga after Jonathan Leslie, executive chairman of Nikanor, said he stood by earlier comments the group was interested in consolidating mining properties in the Congo's Katanga province. Nikanor's $1.8bn project KOV is south of Kamoto. Katanga was recently subjected to a hostile allshare takeover bid by AIM traded CAMEC. However, the Congolese government revoked CAMEC’s mining licenses in August, a turn of events that effectively scuppered the bid. The company’s shares fell sharply. CAMEC has reduced its stake in Katanga to 16% from 22%. George Forrest, who owns about a quarter of Katanga, and who supported CAMEC's bid, said it did not currently make sense for consolidation around Katanga, Nikanor and others. "At the moment, it is better for everyone to stay alone and see later," Forrest said. He would not be exiting his Katanga holding at the current time, he added. Katanga Mining needs $150m to finalise its Kamoto project’s four phases that will lift production to at least 150,000 tonnes of copper a year from 2010. Katanga will release details of its financing arrangements on Friday in a statement that will also address the CAMEC bid, Ditto said. “There is a fair amount of uncertainty and lack of clarity in the markets because of recent events and we are going to address all of that.” Ditto said the project was likely to exceed the targetted 150,000 tonne copper target. The nameplate capacity at the plant Katanga is rehabilitating is 175,000 tonnes/year. “That would give a clear suggestion that we can do a whole lot more than 150 000 tonnes/year,” he said. Click Here to subscribe to our daily newsletter
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