In the pit at the
Ruashi copper mine
in the DRC
 
Johannesburg, South Africa — MININGREVIEW.COM — 21 June 2011 – While South African-based and JSE-listed Metorex Limited “’ the mid-tier mining group which is the target of a US$1.1 billion takeover bid from Brazil’s Vale SA “’ has said that there is no certainty of an unsolicited approach from another party, market sources indicate that a serious Chinese contender has finally decided to make a bid for Metorex.

“There is currently no certainty that Metorex will receive a firm intention to make an offer from the alternate party,” Metorex said in a statement.

Miningmx reports, however, that market sources indicate that a serious Chinese contender has finally decided to make a bid for Metorex, in opposition to Vale’s 735c a share cash offer for the company.

There has been speculation in the market over such a development since the Vale bid was announced in mid-April, with Jinchuan Mining singled out as the most likely bidder. Inexplicably, nothing had happened until this week.

Jinchuan is the company which now controls Wesizwe Platinum after heading up a Chinese consortium which paid R6.6bn for 51% of Wesizwe.

Other companies operating in the DRC include First Quantum Minerals Limited and Eurasian Natural Resources Corporation.

First Quantum is not involved in the offer for Metorex, company president Clive Newall said in an e-mailed response to queries. “Definitely not us.”  And ENRC spokeswoman Charlotte Kirkham would not comment.

A Vale official in Rio de Janeiro who declined to be identified citing corporate policy, said the company would also not comment.