Metorex

Metorex is a South African mining company headquartered in Johannesburg and principally associated with copper and cobalt production and development in Central Africa. The company was established in 1975 by a consortium that included Anthony Simon Malone and initially acquired Rand London Mines. Over subsequent decades, it expanded through acquisitions and held interests in properties producing or prospective for a broad range of minerals, including gold, coal, asbestos, copper, zinc and tin. Its earlier portfolio extended across South Africa, Namibia and Zambia. A major corporate milestone came in December 1999, when Metorex merged with Consolidated Murchison. The enlarged company was listed on both the Johannesburg Stock Exchange and the London Stock Exchange and continued to pursue growth by acquiring mining properties and developing new projects. Its strategic direction increasingly shifted toward base metals, particularly copper and cobalt, as the company built a stronger position in the African Copperbelt. In 2004, Metorex entered a joint venture to develop the Ruashi copper mine site in the Democratic Republic of the Congo (DRC). It subsequently invested substantially in the project, which became one of the company’s principal copper and cobalt assets. Other DRC interests included the Kinsenda mine, the Ruashi operation, and greenfield or development-stage deposits at Dilala East and Lubembe. Through its subsidiary Copper Resources Corporation, Metorex also held interests in the Hinoba-an Porphyry Copper project in the Philippines and in Miniere de Musoshi et Kinsenda, commonly known as MMK. In Zambia, Metorex owned the Chibuluma copper mine near Kalulushi. Chibuluma was described as a modern mechanised underground operation producing copper concentrate for sale to smelters. The company’s DRC portfolio also reflected the regulatory and ownership complexities of mining in the country. MMK had acquired interests in the flooded Kinsenda and Musoshi copper mines in Katanga, but a DRC government title-revisitation process resulted in confirmation in 2009 that the Musoshi mine would be returned to the state-owned company Sodimico. MMK retained an interest in the Lubembe high-grade deposit. Metorex became the subject of competing takeover approaches in 2011. Vale announced an intended offer in April 2011 valued at R7,524 million. Jinchuan Group subsequently made a higher proposal in July, valued at R9,112 million, presenting Metorex as a strategic platform for expanding its mining presence in Africa. South African and Zambian competition authorities approved the transaction in October 2011, and key investors in Zambia and the DRC also approved the deal. The acquisition was valued at approximately US$1.1 billion and was completed with Metorex becoming a wholly owned subsidiary of Jinchuan Group in January 2012. Following the acquisition, Metorex ceased to be an independent publicly traded mining company, but the name continued to represent the operating and asset platform acquired by Jinchuan. Its historical importance lies in the consolidation of African mining properties, the development of copper and cobalt assets in the DRC and Zambia, and its role in Jinchuan’s international expansion strategy.

Metorex was founded in 1975 by a consortium that included Anthony Simon Malone. Its first significant step was the acquisition of Rand London Mines. The company then developed through a series of acquisitions and accumulated exposure to a diverse set of commodities, including gold, coal, asbestos, copper, zinc and tin. Its properties were located in South Africa, Namibia and Zambia, reflecting the company’s early identity as a southern African mining group rather than a single-commodity producer. The company’s corporate scale increased substantially in December 1999, when it merged with Consolidated Murchison. Following the merger, Metorex was listed on the Johannesburg Stock Exchange and the London Stock Exchange. It continued to expand by acquiring additional mining properties, while gradually placing greater emphasis on base metals and projects with long-term development potential. Metorex entered a joint venture for the development of the Ruashi copper mine site in the Democratic Republic of the Congo in 2004. The company subsequently committed substantial investment to the project, helping make Ruashi a central part of its operating portfolio. The wider DRC asset base included the Kinsenda mine, the Ruashi copper and cobalt mine, and the Dilala East and Lubembe greenfield deposits. These properties placed Metorex in the Katanga mining region, an area with major copper and cobalt resources but also complex regulatory, ownership and infrastructure conditions. Metorex’s Zambian portfolio included Chibuluma, a mechanised underground copper mine near Kalulushi. The operation produced copper concentrate for sale to smelters. Through Copper Resources Corporation, a Metorex subsidiary, the group also held a 92.5 percent interest in the Hinoba-an Porphyry Copper project in the Philippines as of November 2011. Copper Resources Corporation held a 75 percent interest in Miniere de Musoshi et Kinsenda, or MMK. MMK had previously been associated with the Forrest Group and owned interests in the flooded Kinsenda and Musoshi copper mines in Katanga. MMK became a subsidiary of Copper Resources Corporation in November 2005. The DRC government’s title-revisitation process affected the MMK portfolio. In February 2009, it was confirmed that the Musoshi mine would be returned to Sodimico, a state-owned DRC mining company. MMK nevertheless retained the Lubembe high-grade deposit, while Kinsenda remained part of the group’s DRC asset interests. Metorex attracted takeover interest in 2011 as demand for copper and cobalt assets supported international mining consolidation. Vale announced an intended offer in April at a stated value of R7,524 million. Jinchuan Group made a higher proposal in July, valued at R9,112 million. Jinchuan presented Metorex as a strategic means of expanding its mining presence in Africa. Competition authorities in South Africa and Zambia approved the bid in October, and principal investors connected with the Zambian and DRC operations approved the deal. The transaction, reported at approximately US$1.1 billion, made Metorex a wholly owned Jinchuan subsidiary in January 2012. This ended Metorex’s period as an independent listed company and integrated its African mining platform into Jinchuan’s international resources business.

• 2012

  Metorex becomes wholly owned by Jinchuan

  [1]Metorexen.wikipedia.org

  The acquisition is completed and Metorex becomes a wholly owned subsidiary of Jinchuan Group.

• 2011

  Jinchuan takeover approved

  [1]Metorexen.wikipedia.org

  Competition authorities in South Africa and Zambia approve Jinchuan’s acquisition of Metorex after a contested takeover process.

• 2009

  Musoshi title revisitation outcome

  [1]Metorexen.wikipedia.org

  The DRC title-revisitation process confirms that the Musoshi mine will return to Sodimico.

• 2005

  MMK becomes a Copper Resources Corporation subsidiary

  [1]Metorexen.wikipedia.org

  Miniere de Musoshi et Kinsenda becomes a subsidiary of Copper Resources Corporation, a Metorex subsidiary.

• 2004

  Ruashi development joint venture

  [1]Metorexen.wikipedia.org

  Metorex enters a joint venture to develop the Ruashi copper mine site in the DRC and later makes substantial investments in the project.

• 1999

  Merger with Consolidated Murchison

  [1]Metorexen.wikipedia.org

  Metorex merges with Consolidated Murchison and becomes listed on the Johannesburg and London stock exchanges.

• 1975

  Metorex is founded

  [1]Metorexen.wikipedia.org

  A consortium including Anthony Simon Malone establishes Metorex, which acquires Rand London Mines as an early foundation asset.

A mining and resource-development company centered on copper and cobalt assets in the African Copperbelt, with a history of building its portfolio through acquisitions, joint ventures and project development.

• Copper and cobalt mining · 2004

  Ruashi mine

  Ruashi is a copper and cobalt mining and development asset in the Democratic Republic of the Congo. Metorex entered a joint venture to develop the site in 2004 and invested substantially in the project. It became one of the company’s most important Central African assets and illustrates Metorex’s strategic shift toward copper and cobalt.

• Copper mining

  Kinsenda mine

  Kinsenda is a copper mine in the DRC associated with Miniere de Musoshi et Kinsenda. The mine was described as having been flooded and formed part of Metorex’s portfolio of Central African copper assets. The broader MMK interests also included the Lubembe high-grade deposit.

• Copper mining

  Chibuluma mine

  Chibuluma is a mechanised underground copper mine near Kalulushi in Zambia. The operation produces copper concentrate that is sold to smelters and was one of Metorex’s principal Zambian production assets.

• Copper exploration and development

  Lubembe deposit

  Lubembe is a high-grade copper deposit in the DRC retained within the MMK-related asset portfolio. It represents a development and exploration interest rather than a described mature production operation in the cited material.

• Copper exploration

  Hinoba-an Porphyry Copper project

  Hinoba-an is a porphyry copper project in the Philippines. Through Copper Resources Corporation, Metorex held a 92.5 percent interest in the project as of November 2011.

• 2011

  Accept Jinchuan Group’s takeover offerM&A

  Background

  Metorex received competing takeover interest from Vale and Jinchuan Group, with both bidders seeking access to its copper and cobalt assets.

  Action taken

  Jinchuan made a higher proposal than Vale and positioned Metorex as a strategic platform for expanding its African mining operations. The bid received relevant competition approvals and investor support.

  Aftermath

  Metorex became a wholly owned subsidiary of Jinchuan Group in January 2012 and ceased to operate as an independent listed company.

  Reported transaction value. R7,524 million Vale proposed offer → R9,112 million Jinchuan proposal; approximately US$1.1 billion reported value (2011)

  • Vale — Vale announced an earlier intended offer but was outbid by Jinchuan Group.

  Source

• 2004

  Enter the Ruashi development joint ventureStrategy

  Background

  Metorex was expanding beyond its earlier diversified southern African mining base and seeking greater exposure to copper and cobalt resources in the DRC.

  Action taken

  The company entered a joint venture to develop the Ruashi copper mine site and subsequently invested substantially in the project.

  Aftermath

  Ruashi became a core asset in Metorex’s Central African portfolio.

  Source

• 2012

  Metorex becomes wholly owned Jinchuan subsidiary[1]Metorexen.wikipedia.org

  M&A · Leadership change

  The Jinchuan transaction was completed and Metorex became a wholly owned subsidiary of the Chinese mining group.

• 2011

  Vale announces proposed offer for Metorex[1]Metorexen.wikipedia.org

  M&A

  Vale announced an intended purchase of Metorex at a stated value of R7,524 million, initiating a takeover contest for the South African mining company.

• 2011

  Jinchuan Group tops Vale bid for Metorex[1]Metorexen.wikipedia.org

  M&A

  Jinchuan Group made a higher offer for Metorex, valued at R9,112 million, and described the company as a strategic vehicle for expanding its African mining interests.

• 2011

  Competition approvals clear Jinchuan acquisition[1]Metorexen.wikipedia.org

  M&A · Regulation

  South African and Zambian competition authorities approved Jinchuan’s proposed acquisition, while major investors in Zambia and the DRC also approved the transaction.

• 2009

  Musoshi mine title returned to Sodimico[1]Metorexen.wikipedia.org

  Regulation · Other

  A DRC government title-revisitation process confirmed that the Musoshi mine would be returned to Sodimico, the state-owned mining company.

1. 1Metorexen.wikipedia.org