Sunday, July 26, 2009

Vale Behind Camec Approach

Camec, which is listed on London's Alternative Investment Market, announced 10 days ago that it had received bid approaches but declined to reveal who was behind them. The interest followed a recent deal struck by the company to supply all the cobalt from its mines in the Democratic Republic of Congo (DRC) to Zhejiang Galico, a Chinese cobalt processor, controlled by a company registered in the British Virgin Islands.

Vale recently opened an office in the DRC and has been eyeing Camec's operations for some time, said the insiders.

In particular there was a suggestion that Vale could team up with Xstrata and make a joint bid for Anglo American. However, Vale poured cold water on the idea by saying it would use the cash to fund its own projects.

Insiders said yesterday that Vale was interested in Camec but gave warning that the deal still may not come off.

Other parties are also said to be interested, including the Chinese. Vedanta Resources may be also be interested in Camec's copper. Vale declined to comment. Camec could not be reached.

At the time of the approaches Camec gave warning that they were preliminary approaches that may or may not lead to an offer being made for the company. Camec's shares have soared from 10p to 15½p as a result of the bid speculation.

Camec has operations in Mozambique, Zimbabwe, South Africa, Mali, Namibia and Kenya. Mr Edmonds, who was born in what was then Northern Rhodesia, played for England from 1975 and 1987.

He has become well-known as a mining entrepreneur in Africa having also established the White Nile Petroleum Company.

Source: Daily Telegraph

No comments: