Brazil's Vale to buy S. African copper producer

AP News
Posted: Apr 08, 2011 5:03 PM
Brazil's Vale to buy S. African copper producer

Brazilian mining company Vale says it will acquire Metorex for more than $1.1 billion in cash, giving Vale majority ownership of the South African company's two mines in Africa's copper belt.

Vale, the world's largest iron ore producer, aims to become one of the world's top copper producers as a result of the acquisition.

Rio de Janeiro-based Vale SA says Metorex Ltd.'s board has agreed to its offer of 7.35 South African rand per share. The deal, which requires approval from holders of 75 percent of Metorex's shares, is worth nearly $1.13 billion (7.52 billion rand).

Metorex holds an 85 percent stake in the Chibuluma copper mine in Zambia, and a 75 percent stake in the Ruashi mine in the Democratic Republic of Congo. That mine produces copper and cobalt.

In 2010, Metorex produced 51,569 metric tons of copper and 3,622 metric tons of cobalt.