London, England — MININGREVIEW.COM — 06 June 2008 – Katanga Mining Limited – headquartered in London and listed on the Toronto Stock Exchange – may become a takeover target when the government of the Democratic Republic of Congo (DRC) completes its mining license review, reports Bloomberg News.
Interviewing Katanga CEO Arthur Ditto at the World Mining Congress here, the agency quoted him as saying: “In the aftermath of the mining review, and with more clarity, somebody could well be interested in acquiring Katanga.” Bloomberg reports that Glencore International AG, the world’s largest commodity trader, said last month that it may raise its 12% stake in Katanga.
The DRC, which has 10% of the world’s copper deposits, has reviewed 61 mining licenses to amend those deemed unfair to the state, and to boost government revenue as metal prices boom.
Toronto-based Katanga – which completed its acquisition of rival copper producer Nikanor Plc in February for US$1 billion (R7.6 billion), excluding about US$1 billion (R7.6 billion) in Nikanor’s cash holdings – is in the process of restarting the DRC’s largest underground copper mine.
Katanga plans to boost annual output to 300 000 tonnes by 2011, from about 40, 000 tons this year. The copper price has more than doubled in London in the past three years.