Zijin Mining: Group to buy 9.9% of Ivanhoe shares

ZIJIN Mining will buy 9.9 percent of Ivanhoe Mines, acquiring C$105 million (R1 billion) of new shares from billionaire Robert Friedland’s Africa-focused explorer to help it push forward with projects in the region. Zijin would buy about 76.8 million new shares at C$1.36 each in a private placement, the companies said yesterday in a joint statement. The funds would advance the Kamoa and Kipushi copper prospects in the Democratic Republic of Congo and the Platreef platinum project in South Africa, they said. The two agreed “to explore additional opportunities”, Friedland said. “In particular, Ivanhoe and Zijin are in detailed, friendly discussions about the strategic co-development of our Kamoa copper discovery.” Zijin is buying the stake as Ivanhoe plans to develop Platreef as the lowest-cost platinum mine in Africa, with about $1.4bn (R16.8bn) needed to dig the Kamoa copper mine. The Chinese company is targeting acquisitions in Africa, setting aside 4 billion yuan (R7.8bn) to 8 billion yuan, chief financial officer Hongying Lin said in August. – Bloomberg