Minmetals keen on Anglo's zinc assets

Several domestic metal firms including China Minmetals Corp are in the fray to acquire Anglo American's divested zinc assets, according to sources familiar with the matter.
Minmetals, Shenzhen-based Zhongjin Lingnan Nonfemet Co Ltd and Canadian mining company Teck Resources, in which Chinese sovereign wealth fund China Investment Corp owns a 17-percent stake, are in talks for the zinc assets to help secure supplies of resources, 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," the source said. Zinc is widely used in die-casting and battery manufacturing.
Minmetals paid $1.4 billion for the acquisition of Oz Minerals including the Rosebery zinc mines in Australia.
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 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 percent of the group revenue in 2008.
Its zinc assets include the 100-percent-owned Skorpion mine in Namibia and Lisheen mine in Ireland, the 74-percent-owned Black Mountain mine and Gamsberg Project in South Africa. Anglo American's zinc businesses produced 340,500 tons of zinc and generated revenue of $209 million last year.
The 21st Century Business Herald said Anglo American held talks with Chinalco, the country's largest producer of aluminum, and Baosteel, the country's largest steel mill, over the Scaw Metals unit.
http://www.chinadaily.com.cn/bizchina/2009-11/14/content_8971323.htm

Miner invests in zinc processing facility

THE LOCAL unit of Canadian miner TVI Pacific, Inc. has started the construction of a zinc processing facility in its copper mine in the province of Zamboanga del Norte.
The construction, which was started three months ahead of schedule, will enable the miner to sell more mineral resources from its Canatuan copper mine, TVI Resource Development (Phils.), Inc. said in a statement posted on its Web site Friday.

“As we mine through the copper rich portion of the ore body and start getting into the copper-zinc zone as expected, the ability to separate and monetize the zinc will result in additional revenue,” said TVI Pacific President and Chief Executive Clifford M. James.

“This will allow us to further accelerate two key target areas of our growth strategy, which include exploration and development activities at Canatuan and Balabag, and exploration projects at Tamarok [all in Zamboanga del Norte],” Mr. James added.

The miner will spend $2.5-$3 million for the zinc circuits, which are expected to be operational late April next year. Construction began on October 28.

Its copper concentrate production will continue at a rate of approximately 5,000 MT per month while the zinc circuit is designed to produce approximately 1,000 MT per month of zinc concentrate, the miner said.

The Canatuan project is estimated to produce 65.428 million pounds of copper and 5,301 metric tons (MT) of zinc.

Zinc is mainly used as a protective coating for iron and steel and as the main alloy for brass.

"Off-take arrangements for the zinc concentrate are currently being negotiated," the miner said.
http://beta.bworldonline.com/main/content.php?id=1041