| The TEX Report Topics < Others > | |
| HOME >> Topics List >> December, 2008 >> 18 (Thu) |
| ARM Invites Vale Into African Copper Business |
| = By positioning Vale to be ARM's 50% joint venture partner in TEAL = |
|
South African resources company African Rainbow Minerals Limited (ARM) announced December 17 that it would acquire the shares held by minority shareholders in TEAL Exploration & Mining Incorporated (TEAL) and to simultaneously introduce Brazilian Vale as a 50% joint venture partner in TEAL. TEAL will be thereby delisted from the Toronto Stock Exchange (TSX) and Johannesburg Stock Exchange (JSE). This will have the net effect of reducing ARM's shareholding in TEAL to 50%. The cash offer price to TEAL shareholders and the price ARM will receive for the sale of its 15% stake in TEAL is C$3.00 per share. TEAL has been listed on the TSX since April 2006 and on the JSE since April 2006, and is currently owned 65% by ARM. ARM expects the joint venture partnership with Vale in TEAL would ensure that risk exposure, capital allocation, funding and copper mining expertise would be optimized for the development of a successful copper business in Africa. As the world's largest iron ore and pellet producer, Vale is also deploying mineral resources and energy businesses. Vale is operating a copper mine in Brazil, Sossego, and has copper production associated with its nickel operations in Canada. It is currently developing copper projects in Salobo in Brazil, and Tres Valles in Chile, and is studying several initiatives that could enable Vale to reach an annual production capacity of one million metric tons over the next five to seven years. ARM also owns a 50% stake in Assmang, which is a South African resources company engaged in chrome, manganese and iron ore operations. |
| last modified : Wed 24 Dec, 2008 [10:14] |
