China's Jinchuan going ahead with takeover of of Zambia's Chibuluma Mine despite change of Government

By John Chola
07/10/2011
The new owners of Chibuluma Mine in Kalulushi, Jinchuan Group of China have committed to continue working towards the fulfillment of the outstanding conditions precedent notwithstanding change of government in Zambia.
Standard & Poor’s had said that President Michael Sata’s victory had increased economic policy uncertainty.
Standard & Poor’s however added that they expected economic policy shifts of the new government to continue to broadly support investment.
At the Metorex General Meeting held in Johannesburg, 98.6 per cent of Metorex shareholders that were present and entitled to vote, voted in favour of the offer by a South African subsidiary of Jinchuan to acquire the entire issued and to be issued ordinary share capital of Metorex, owners of 85 per cent shares in Chibuluma, by way of a scheme of arrangement.
Headquartered in Jinchang City, Gansu Province, Jinchuan is China’s largest producer of nickel, cobalt and platinum group metals, as well as one of the largest producers of refined copper.
Globally, Jinchuan Group is currently the fourth largest producer of nickel and the second largest producer of cobalt.
Commenting on the Metorex shareholder vote, Mr. Yang Zhiqiang, Chairman of Jinchuan’s Board of Directors, said, “Shareholder’s vote is an important step forward in our acquisition of Metorex. We are pleased with the shareholder support.”
Under the terms of the offer, Metorex shareholders voted in favour of Jinchuan’s R9.1bn offer to acquire Metorex.
Shareholders in Metorex would receive a cash consideration of R8.90 per share, by way of a scheme of arrangement.
The implementation of the scheme of arrangement is subject to the fulfillment or waiver of certain conditions precedent as set forth in the circular to Metorex shareholders, dated 2 August 2011 (the “Circular”).
Metorex is a producer of copper and cobalt, with operations in Zambia and Democratic Republic of Congo - the African Copper Belt.
Metorex has two operating mines, Chibuluma located in Zambia with 85 per cent interest, and Ruashi in the DRC, in which it holds a 75 per cent interest.
In DRC Metorex has three projects, one in the development phase and two in the exploration phase.
In 2010, Metorex produced 51,569 metric tons of copper and 3,622 metric tons of cobalt from its Zambian and DRC operations.
The takeover of Metorex, a firm incorporated in South Africa under the South African laws, means Jinchian Group will own and operate in both Zambian and DRC.
Timetable for remainder of Scheme process:
Finalisation Date expected to be on Friday, 18 November
Finalisation Date announcement expected to be published on SENS on Friday, 18 November
Finalisation Date announcement expected to be published in the South African press on Monday, 21 November
Expected last day to trade Metorex Shares on the JSE in order to be recorded in the Register to receive the Scheme Consideration on Friday, 25 November
Suspension of listing of Metorex Shares at the commencement of trade on the Johannesburg Stock Exchange (JSE) expected to be on Monday, 28 November
Scheme Consideration Record Date to be recorded in the Register in order to receive the Scheme
Consideration expected to be on or about Friday, 2 December
Expected Operative Date of the Scheme on Monday, 5 December
Payment or delivery of the Scheme Consideration expected to be transferred electronically or posted to certificated Scheme Participants, provided certificated title documents are received on time, on or about (subject to limited exceptions) Monday, 5 December
Expected termination of listing of Metorex Shares on the JSE at the commencement of trade on or about Tuesday, 6 December
The parties said the above dates and times were subject to the factors stated in the Circular and any changes as may be agreed to by Metorex and Jinchuan’s subsidiary that is making the offer, and approved by the JSE and/or the Takeover Panel, if required.
Ends…..