Major Deals This Week – Zijin, Xstrata, Wuhan, De Beers and More

3 December 2009 (Last Updated December 3rd, 2009 18:30)

In mining business this week, Zijin Mining made its presence known by creating a bigger stamp in the international mining space. Zijin implemented its cash takeover bid for all of Indophil's issued shares for $498m. Zijin also signed an agreement with Xstrata

In mining business this week, Zijin Mining made its presence known by creating a bigger stamp in the international mining space.

Zijin implemented its cash takeover bid for all of Indophil's issued shares for $498m.

Zijin also signed an agreement with Xstrata Queensland to acquire its 19.9% stake in Indophil for A$1.28 a share.

Indophil holds 34.23% interest, with a right to purchase another 3.27% in the Philippines-based Tampakan copper-gold project, and Xstrata owns a 62.5% stake.

Meanwhile, Sino Gold security holders approved the schemes of arrangement for a proposed takeover by Eldorado Gold.

The consideration involves 0.55 Eldorado shares to Sino Gold stakeholders for each share it owns, which amounts to $2.04bn.

Chinese steelmaker Wuhan Iron & Steel decided to shell out $400m to acquire a stake in Brazil-based MMX Mineracao e Metalicos to expand its iron ore supply.

Following the acquisition, Wuhan will hold a 21.52% stake in MMX.

In a separate development, global diamond producer De Beers said it will raise $1bn from its investors to decrease its $3.5bn debt.

The in-principle agreement for rights issue was made with the investors following a poor financial performance by the company in the first half of the year due to a decline in diamond prices.

Oromin Explorations sold 8,117,850 common shares at C$0.85 price per common share for C$6.9m gross proceeds, which will be utilised for exploration work at the Sabodala project in Senegal.

And while others rein funds in, PT Bumi Resources is considering spending its cash – it says it could invest $500m in the development of copper and gold mines located on Sulawesi island in Indonesia and $300m for iron ore development in Mauritania.

Always active, Rio Tinto concluded the sale of Alcan Composites, part of the Alcan Engineered Products division, to Schweiter Technologies for $349m total consideration.

While Canada's Taseko Mines plans to sell its 25% share in its Gibraltar copper/molybdenum mine to Sojitz Corporation for $170.5m.

The proceeds from the transaction will help Taseko develop its Prosperity gold/copper project.