MCC, HZL Said To Be In Running For Anglo Zinc Business

Bid Expected To Realise $1 Billion

Metallurgical Corporation of China Ltd (MCC) and Hindustan Zinc are said to be in the running for the $1 billion worth of zinc assets put up for sale by miner Anglo American Plc.

MCC has recently begun to expand its overseas mining assets. An anonymous company official told the newspaper China Daily that "We intend to capitalize on the commodity price rally and the Anglo bid is in line with our strategy."

Most of MCC’s mining assets are located overseas. In February 2010 the company paid $200 million for a 5 per cent stake in Australian miner, Resourcehouse Ltd in a deal which saw it agree to buy coal from Resourcehouse and a 10 per cent stake in the China First coal project.

Hindustan Zinc is although thought to be bidding for the assets. The company recently became the world’s largest zinc miner and sources within the business have told the Indian press that the company is working on a bid.

Anglo American's zinc assets include the wholly owned Skorpion and Lisheen mines in Namibia and Ireland and a 74 percent interest in the Black Mountain mine in South Africa.