Central African Mining and Exploration Company

Central African Mining and Exploration Company plc, commonly known as CAMEC, was a mining and exploration company active across several African countries. Its most important business was concentrated in the Democratic Republic of the Congo, particularly in Katanga Province, where it developed copper and cobalt interests and pursued processing infrastructure. The company also held or investigated projects involving bauxite in Mali, coal in Mozambique, fluorspar in South Africa and platinum in Zimbabwe. CAMEC became a public company on the London Stock Exchange's Alternative Investment Market in October 2002. Its early growth strategy relied on acquiring and developing mineral projects, supported by an ability to raise funding and by management's stated record of advancing mining assets. In September 2002, Andrew Groves reported that between six and seven million South African rand had been spent upgrading the Three Aloes mine, reflecting the company's emphasis on bringing acquired or existing operations into production. The company's expansion into the Congo involved Boss Mining Sprl and the Mukondo resource. In February 2006, CAMEC acquired an 80 percent interest in Boss Mining. The transaction was associated with the transfer of an approximately 17 percent CAMEC shareholding to Zimbabwean businessman Billy Rautenbach, who had previously controlled Boss Mining and had links to the Congolese state mining company Gécamines. The provenance of interests in Mukondo became politically and legally controversial, particularly amid a Congolese government review of mining contracts granted during and after the Second Congo War. CAMEC later attempted to expand its position in the Congolese copper sector by proposing an all-share acquisition of Canadian-listed Katanga Mining. CAMEC already held about 22 percent of Katanga Mining when the proposal was announced in July 2007. The bid became entangled with disputes concerning Rautenbach, the validity of the C19 license and the Congolese government's review of mining rights. CAMEC disputed allegations that the license had been obtained fraudulently and argued that actions against Rautenbach were intended to undermine the bid. The company withdrew the proposal in September 2007, citing uncertainty surrounding the license review. CAMEC reorganized its Mukondo interests in 2007 through an arrangement with Prairie International and Tremalt, companies associated with Dan Gertler. The resulting structure gave CAMEC a 70 percent interest and Gécamines a 30 percent interest in the combined venture, while Gertler-related companies received a 32.7 percent equity stake in CAMEC. Billy Rautenbach was excluded from the new ownership structure. The venture planned to restart mining at Mukondo Mountain, reopen the Kakanda concentrator and develop the Luita copper-cobalt solvent extraction and electrowinning facility. Operations at Mukondo Mountain restarted in February 2008, and CAMEC described Luita as potentially the world's largest facility of its type when completed. The company targeted annual copper cathode production of 100,000 tonnes. In July 2009, CAMEC agreed to deliver its full annual production of cobalt concentrate from Mukondo Mountain under a long-term arrangement with Zhejiang Galico Cobalt & Nickel Materials of China. Elsewhere, the company reported an inferred bauxite resource of 439 million tonnes at a Mali property in May 2009 and was conducting a feasibility study at the Bokai platinum prospect in Zimbabwe, with production then expected to begin in 2012. CAMEC ceased to exist as an independent company after Eurasian Natural Resources Corporation, a Kazakhstan-based mining group, made a cash offer valued at £584 million in September 2009. The acquisition completed in November 2009. At completion, chair Philippe Edmonds and chief executive Andrew Groves resigned. The transaction brought CAMEC's principal assets and operations into ENRC and ended the company's independent corporate life.

Central African Mining and Exploration Company plc developed as an Africa-focused mining company with an acquisition-led growth model. Its activities covered both producing assets and exploration or feasibility-stage properties. The company operated or investigated projects in the Democratic Republic of the Congo, Mali, Mozambique, South Africa and Zimbabwe, with commodities ranging from copper and cobalt to bauxite, coal, fluorspar and platinum. In the early 2000s, CAMEC worked to upgrade and develop mining properties while building a public-market financing base. Andrew Groves reported in September 2002 that six to seven million South African rand had been spent improving the Three Aloes mine. The company joined the London Stock Exchange's Alternative Investment Market in October 2002. Its ability to raise money on the market supported a program of acquisitions and project development. The company's defining expansion came in the Democratic Republic of the Congo. Before CAMEC's entry, Zimbabwean businessman Billy Rautenbach controlled Boss Mining Sprl, which owned half of the Mukondo resource. CAMEC acquired an 80 percent interest in Boss Mining in February 2006. As part of the transaction, Rautenbach received approximately 17 percent of CAMEC's shares. The transaction was politically sensitive because questions had been raised about the provenance of Rautenbach's claims to Mukondo and his appointment to lead Gécamines while Zimbabwe supported the Congolese government. The controversy intensified after the Congolese administration began reviewing mining contracts associated with the Second Congo War and its aftermath. In July 2007, CAMEC proposed acquiring Katanga Mining through a share exchange. CAMEC already owned approximately 22 percent of Katanga. The proposal encountered obstacles after Rautenbach was arrested and deported to Zimbabwe. Congolese officials alleged that the C19 license had been obtained fraudulently, while CAMEC rejected that allegation and said the action was intended to destabilize its bid. CAMEC withdrew the proposal in September 2007, referring to uncertainty created by the Congolese license review. Disputes over the validity of certain mining rights continued into October. CAMEC's Mukondo interests were restructured during 2007. Dan Gertler acquired Prairie International, which owned Tremalt; Tremalt in turn controlled an 80 percent interest in Kababankola Mining Company Sprl and the other half of the Mukondo project. CAMEC and Prairie International agreed to combine their Mukondo assets in a new joint-venture structure. Rautenbach was excluded from the new ownership arrangement. The resulting structure allocated 70 percent to CAMEC and 30 percent to Gécamines, while Gertler-related companies received a 32.7 percent stake in CAMEC. The reorganized venture aimed to extract cobalt from Mukondo Mountain, reopen the Kakanda concentrator and operate the Luita copper-cobalt solvent extraction and electrowinning facility. Mukondo Mountain operations restarted in February 2008. In July of that year, CAMEC said Luita was expected to become the largest facility of its kind in the world when completed. The company targeted annual copper cathode production of 100,000 tonnes, although the available reference material does not establish whether that target was achieved. CAMEC also maintained interests outside the core Congolese operations. Its stake in Copper Resources Corporation was described as disenfranchised, leaving South African company Metorex with an effective economic interest of 99.99 percent. In Mali, CAMEC reported in May 2009 that it had identified an inferred bauxite resource of 439 million tonnes. In Zimbabwe, it was conducting a feasibility study at the Bokai platinum prospect in July 2009 and anticipated possible production in 2012. In July 2009, CAMEC announced a long-term agreement to deliver its entire annual Mukondo Mountain cobalt concentrate production to Zhejiang Galico Cobalt & Nickel Materials in China. The agreement connected the company's Congolese production plans with a downstream industrial customer in the Chinese cobalt market. CAMEC's independent existence ended in 2009. Eurasian Natural Resources Corporation of Kazakhstan made a £584 million cash offer in September. The acquisition closed in November 2009. CAMEC chair Philippe Edmonds and chief executive Andrew Groves resigned when the transaction was completed, and CAMEC's assets and operations became part of ENRC.

• 2009

  ENRC acquisition completed

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  Eurasian Natural Resources Corporation completed its acquisition of CAMEC, ending the company's independent corporate existence.

• 2008

  Mukondo Mountain restart

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  Operations at Mukondo Mountain restarted, alongside plans to revive the Kakanda concentrator and develop the Luita processing facility.

• 2007

  Katanga Mining bid withdrawn

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  CAMEC withdrew its proposed acquisition of Katanga Mining after legal and regulatory uncertainty surrounding Congolese mining licenses.

• 2007

  Mukondo joint-venture restructuring

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  CAMEC combined its Mukondo interests with those associated with Prairie International and Tremalt in a revised structure involving CAMEC and Gécamines.

• 2006

  Boss Mining acquisition

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  CAMEC bought an 80 percent interest in Boss Mining, gaining a major position in the Mukondo resource.

• 2002

  Three Aloes mine upgrade reported

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  Andrew Groves reported that six to seven million South African rand had been spent upgrading the Three Aloes mine.

• 2002

  Admission to AIM

  [1]Central African Mining and Exploration Companyen.wikipedia.org

  CAMEC listed on the London Stock Exchange's Alternative Investment Market and began pursuing a more aggressive acquisition and development program.

An acquisition-driven African mining and exploration company focused particularly on developing copper and cobalt assets in the Democratic Republic of the Congo, while maintaining a portfolio of exploration and development interests in other African countries.

• Base metals

  Copper

  Copper was one of CAMEC's principal commodities, particularly through its Congolese assets. The company planned to process copper-bearing material through the Luita solvent extraction and electrowinning facility and targeted annual copper cathode production of 100,000 tonnes.

• Battery and specialty metals

  Cobalt

  Cobalt was a central focus of the Mukondo Mountain project in Katanga Province. CAMEC restarted operations at Mukondo Mountain and later agreed to supply its entire annual cobalt concentrate production under a long-term contract with Zhejiang Galico Cobalt & Nickel Materials.

• Industrial minerals and ores · 2009

  Bauxite

  CAMEC explored for bauxite in Mali. In 2009, the company reported an inferred resource of 439 million tonnes on a Mali property, although the available material does not establish that the project reached production.

• Energy minerals

  Coal

  Coal was among the commodities covered by CAMEC's wider African exploration and development portfolio, with activities reported in Mozambique. No production scale or commercial outcome is specified in the available reference material.

• Industrial minerals

  Fluorspar

  CAMEC held or pursued fluorspar interests in South Africa as part of its diversified African mining portfolio. The available material does not provide details on production, reserves or operating status.

• Precious and platinum-group metals · 2009

  Platinum

  In Zimbabwe, CAMEC conducted a feasibility study at the Bokai platinum prospect in 2009. The company expected possible production in 2012, but the reference material does not confirm that production began.

• 2007

  Dispute over Congolese mining rights and the C19 license

  CAMEC's proposed Katanga Mining acquisition became entangled in a Congolese review of mining contracts and allegations by officials that the C19 license had been obtained fraudulently. CAMEC disputed the allegation and said the controversy was being used to disrupt its bid.

  Source

• 2006

  Controversy surrounding the Mukondo ownership history

  The provenance of Billy Rautenbach's claims to the Mukondo resource was controversial. The issue was particularly sensitive because of his concurrent association with Gécamines and Zimbabwe's support for the Congolese government.

  Source

Read more

• 2009

  Long-term cobalt supply agreementStrategy

  Background

  CAMEC sought an assured outlet for cobalt concentrate expected from Mukondo Mountain.

  Action taken

  The company agreed to deliver its entire annual Mukondo cobalt concentrate production to Zhejiang Galico Cobalt & Nickel Materials of China under a long-term contract.

  Aftermath

  The agreement linked CAMEC's Congolese cobalt production to a Chinese industrial buyer before the company was acquired by ENRC later in 2009.

  Source

• 2009

  Acquisition by Eurasian Natural Resources CorporationM&A

  Background

  ENRC sought to acquire CAMEC and its African mining portfolio.

  Action taken

  ENRC made a cash offer valued at £584 million in September 2009 and completed the acquisition in November.

  Aftermath

  CAMEC ceased operating as an independent company. Chair Philippe Edmonds and chief executive Andrew Groves resigned when the transaction closed.

  Cash offer value. £584 million (September 2009 offer)

  Source

• 2008

  Restart of Mukondo Mountain operationsProduct launch

  Background

  The reorganized Mukondo venture was intended to restore production and support development of copper and cobalt processing infrastructure.

  Action taken

  Operations at Mukondo Mountain restarted in February 2008. CAMEC also advanced plans for the Kakanda concentrator and Luita solvent extraction and electrowinning facility.

  Aftermath

  CAMEC later announced a long-term arrangement to supply Mukondo cobalt concentrate to a Chinese customer.

  Source

• 2007

  Withdrawal of the Katanga Mining acquisition proposalM&A

  Background

  CAMEC proposed a share-based combination with Katanga Mining while already holding about 22 percent of the Canadian copper company. The proposal faced uncertainty caused by a Congolese review of mining licenses and disputes concerning the C19 license.

  Action taken

  CAMEC withdrew the proposed transaction in September 2007, citing the uncertainty surrounding the license review.

  Aftermath

  The combination did not proceed, and CAMEC continued to contest claims that its relevant mining rights had been annulled or improperly obtained.

  Source

• 2007

  Reorganization of the Mukondo assetsStrategy

  Background

  CAMEC and Prairie International, whose related companies held complementary interests in the Mukondo project, sought to combine their assets and remove ownership complications associated with Billy Rautenbach.

  Action taken

  The parties created a new holding and joint-venture structure in which CAMEC held 70 percent and Gécamines held 30 percent. Gertler-related companies received a 32.7 percent equity stake in CAMEC.

  Aftermath

  The venture restarted Mukondo Mountain operations and pursued the Kakanda concentrator and Luita processing projects.

  Source

• 2009

  CAMEC announced a long-term cobalt supply agreement[1]Central African Mining and Exploration Companyen.wikipedia.org

  Other

  CAMEC agreed to supply all of its annual Mukondo Mountain cobalt concentrate production to Zhejiang Galico Cobalt & Nickel Materials of China under a long-term arrangement.

• 2009

  ENRC agreed to acquire CAMEC[1]Central African Mining and Exploration Companyen.wikipedia.org

  M&A · Leadership change

  Eurasian Natural Resources Corporation made a £584 million cash offer for CAMEC. The acquisition completed in November, after which the chairperson and chief executive resigned.

• 2008

  Mukondo Mountain operations restarted[1]Central African Mining and Exploration Companyen.wikipedia.org

  Product generation

  The reorganized venture announced the restart of operations at Mukondo Mountain and continued plans for concentrator and processing development.

• 2007

  Mukondo assets were reorganized into a new joint venture structure[1]Central African Mining and Exploration Companyen.wikipedia.org

  M&A

  CAMEC and Prairie International combined their Mukondo-related interests in a structure in which CAMEC held 70 percent and Gécamines held 30 percent, with Gertler-related companies receiving a CAMEC equity stake.

• 2006

  CAMEC acquired an interest in Boss Mining[1]Central African Mining and Exploration Companyen.wikipedia.org

  M&A

  CAMEC acquired an 80 percent interest in Boss Mining, expanding its exposure to the Mukondo resource in the Democratic Republic of the Congo.

• 2002

  CAMEC listed on the Alternative Investment Market[1]Central African Mining and Exploration Companyen.wikipedia.org

  Other

  Central African Mining and Exploration Company became listed on the London Stock Exchange's Alternative Investment Market.

1. 1Central African Mining and Exploration Companyen.wikipedia.org