Chinese keen on Skorpion

SEVERAL Chinese metal firms, including China Minmetals Corporation, are in the fray to acquire Anglo American’s divested zinc assets including Namibia’s Skorpion zinc mine, the China Daily reported yesterday.

‘A source familiar with the matter said that Minmetals, Shenzhen-based Zhongjin Lingnan Nonfemet Company Limited and Canadian mining company Teck Resources, in which Chinese sovereign wealth fund China Investment Corporation owns a 17 per cent stake, are in talks for the zinc assets to help secure supplies of resources,’ the paper reported.’The source said after Minmetals’ takeover of Oz Minerals, its zinc business has started to grow. Seeking other zinc projects to meet its growing demand is in line with the company’s business strategy.’According to the China Daily, a source from China Minmetals who declined to be named, admitted that the company was keen on acquiring Anglo American’s zinc assets but refused to divulge any further details on grounds of confidentiality.Anglo American said that last month it was trimming part of its management and also selling non-core assets to cut costs. The assets included Scaw Metals, Copebras, Catalao and the group’s portfolio of zinc assets. Together with the Tarmac unit which has previously been identified as non core, these assets accounted for nearly 11 per cent of the group revenue in 2008.Its zinc assets include the wholly-owned Skorpion mine in Namibia and Lisheen mine in Ireland, the 74 per cent owned Black Mountain mine and Gamsberg Project in South Africa. Meanwhile, MetalBulletin has reported that Exxaro Resources and Anglo American will consider the option of packaging their southern African zinc assets together in order to secure a sale. ‘We have been looking at various options and, among other things, one would be to sell our zinc assets as a package with Anglo’s,’ Exxaro Finance Director Wim De Klerk told MB. – China Daily, MetalBulletin