Market Report – Grupo Mexico Regains Control of Asarco

19 November 2009 (Last Updated November 19th, 2009 18:30)

This week saw Grupo Mexico regain control over copper miner Asarco following final approval of its acquisition for $2.2bn and $1.4bn in cash held by Asarco. Zijin Mining's subsidiary Bayannaoer Zijin has signed share purchase agreements to acquire a 37.5% s

This week saw Grupo Mexico regain control over copper miner Asarco following final approval of its acquisition for $2.2bn and $1.4bn in cash held by Asarco.

Zijin Mining's subsidiary Bayannaoer Zijin has signed share purchase agreements to acquire a 37.5% stake in Chinese mining company Wancheng Commercial.

Bayannaoer Zijin signed the agreements with Jinhui Wine, Yate Investment and Hainan Baohui for acquiring 15%, 12.5% and 10% equity stakes in Wancheng Commercial, respectively.

Zijin Mining owns a 10% equity stake in Wancheng Commercial, while Hainan Qianjinda Investment Company owns a 52.5% equity stake.

Meanwhile, Kinross Gold's subsidiary Fairbanks Gold Mining has sent a letter of intent to Teryl Resources' subsidiary Teryl to acquire its 20% stake in the Alaska-based Gil Joint Venture Gold Property, an 80:20 joint venture between Kinross and Teryl.

Teryl's board will review the proposal, following which a fairness opinion could be conducted to ascertain if the proposal is acceptable.

India's JSW Steel plans to make a $500m investment for acquiring coal mines in South Africa and Australia to ensure reliable supplies for expansion locally.

The company will source 50% of its coal overseas as local demand is expected to escalate by 10%.