RE: RE: Minmetals $1.3 billion cash bid for copperMinmetals can be outbeat for another bid and it could be Vale to go for it or not so far it is a friendly offer looks like they may tender to it because of such market conditions. Minmetals is still on the hunt for another in the Congo. Freeport and LUN stake in the Congo could get interesting. While other companies hold fist tight to their money the Chinese smart to take advantage of the situation and bid for companies at depressed prices fully knowing they will get a huge resource at a discount and the fact China is the one who supports the copper price can turn around and run copper prices up again, along with other commodities. Just smart play on China's part. JMHO
Copper miner gets $500m shot in arm
Zambia's importance as a global copper producer was reaffirmed this week when Standard Bank announced that it had provided a $500-million bridge finance facility to Konkola Copper Mines in Zambia.
MORE OF THE SAME: Konkola produces more than 200 000 tons of copper a year
" 'Sata's election could affect copper production in Zambia'
The facility will be used to refinance shareholder loans from Konkola's parent company, UK-listed Vedanta Resources.
Standard Bank said it had also been mandated to arrange and underwrite a $700-million term loan to fund investment by Konkola.
Zambia produces about 800000 tons of copper a year, making it one of the largest copper producers in the world and the largest in Africa.
Analysts expect Zambia's annual copper production to increase to a million tons within the next year.
In 2009, copper and cobalt accounted for 83% of Zambia's exports, according to Brad Breetzke, head of mining, energy and infrastructure finance at Standard Bank.
The acquisition of JSE-listed Metorex, which controls the Chibuluma copper mine in Zambia and several mines in Democratic Republic of Congo, by Chinese mining group Jinchuan highlighted the growing importance of Africa as a copper-producing region.
Brazilian mining group Vale made an earlier offer for Metorex, but was outbid by the Chinese group.
Konkola is the second-biggest integrated copper producer in Africa, producing more than 200000 tons of copper cathodes a year.
In November last year Vedanta announced plans to list Konkola, of which its owns 79.4%, on the London Stock Exchange to raise $1.1-billion to boost Konkola's output.
Later, Vedanta said that the listing had been postponed to this year, but since then it has not clarified when it will happen or if the listing is still in the pipeline.
The election of Michael Sata as Zambia's new president last week has created uncertainty, with the copper industry unsure if he will take steps that might affect it.
Sata has in the past criticised foreign mining investment in Zambia, especially from China, for labour practices and a disregard for safety and the local culture.
But in the last weeks of his campaign and after his election he appeared to have softened his stance.
According to Peter Major, an analyst at Cadiz, Sata's election could affect copper production in Zambia.
"A lot of the producers have been operating with a disregard for the environment and the labourers," he said.
"Now there is a president who was elected on the platform that these companies will be held accountable.
"He [Sata] says Zambia welcomes all nationalities, but they must play by Zambia's rules, which will definitely slow down copper production, which will be good for the price."
Bloomberg reported on Friday that Sata said in Lusaka that all exports from Zambia had to be cleared by the central bank as the government was seeking more information on what was being taken out of the country.
According to the Financial Times, Sata's new mines minister, Wilbur Simusa, said on Thursday that the money Zambia received from mines in the form of taxes was not adequate, leading to speculation that the government might increase taxes on mining companies.
The copper price fell to below $7500 a ton last week, its lowest level in more than 10 months, as global commodity prices took a beating due to fears of a slowdown in the demand for raw materials.
Rand Merchant Bank (RMB) said in a report this week that the demand conditions from China were expected to support the copper price over the medium term.
"However, any sign of a meaningful decline in Chinese demand may pose significant downside risk to base metal prices," RMB said.