Vale offers $1.1 billion for S.Africa's Metorex

8th April 2011, Comments 0 comments

Brazilian mining giant Vale, the world's largest iron producer, has offered to buy South African miner Metorex for 7.5 billion rands ($1.1 billion, 782 million euros), the companies said Friday.

"Under the terms of the offer, if implemented, the Metorex shareholders will receive a cash consideration of 7.35 rand per share," they said in a statement.

The move to acquire Metorex is part of Vale's drive to become a copper major, the statement added.

Metorex owns the Ruashi copper and cobalt open-pit mine in the Katanga province of the Democratic Republic of the Congo, as well as the Chibuluma underground copper mine and the Sable zinc operation in Zambia.

Metorex, which will be delisted if the deal goes through, recently raised its copper and cobalt reserves estimates.

© 2011 AFP

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