Terramin Australia Ltd., an Australian zinc and lead producer, will start financing talks in China next month for its planned $266 million Tala Hamza zinc and lead mine in Algeria.
China Nonferrous Metal Industry Foreign Engineering and Construction Co., which bought an 11 percent stake in Terramin last month, “will be introducing us to their various backers,” including China Development Bank Corp., Kevin Moriarty, chief executive officer of the Adelaide-based company, said today.
China, the world’s biggest buyer of metals, may spend more than $500 billion on overseas resources investments over the next eight years to secure supplies, according to Deloitte Touche Tohmatsu. China Nonferrous wants to boost its holding and participate in new ventures, Moriarty said.
“We don’t envisage any problems with financing the construction, and nor do our new partners,” Moriarty said in an interview in Melbourne, adding that he and Chief Financial Officer Martin Janes are due in China in the middle of next month for a variety of meetings. China Nonferrous “are keen for us to look and acquire more projects so they want to back us,” he said.
Terramin started production from its Angas zinc and lead mine in South Australia state last July.
Zinc has increased 17 percent this year and jumped 5.3 percent to $1,411.50 a metric ton yesterday on the London Metal Exchange. A “strong price recovery” in zinc is expected later in 2009 and through to 2010, Royal Bank of Scotland Group Plc said this week. Demand for zinc is estimated to grow 6 percent a year from 2010 to 2012, RBS said.
Tala Hamza is scheduled to start output by late 2011 and is expected to initially produce 250,000 tons of zinc and lead concentrate, Terramin said in an April 8 statement. Output is expected to increase to as much as 500,000 tons a year, the statement said. Commodities trading company Transamine has agreed to sales accords from the mine, Moriarty said.
The timing of building Tala Hamza “is totally spot on, we want to be bringing it in as the next high-cycle begins and not during it,” Moriarty said.
Source: Bloomberg
Showing posts with label Algeria. Show all posts
Showing posts with label Algeria. Show all posts
Thursday, April 30, 2009
Monday, March 30, 2009
Terramin Gets Financing For Algerian Mine
Terramin Australia Ltd said on Monday it had begun financing for a proposed zinc and lead mine in Algeria, securing A$46 million ($32 million) from investors in China and Europe.
Terramin has agreed to a five-year lead and zinc concentrate supply pact with commodities trader Transamine for material from the mine, Talma Hamza, which could potentially yield a quarter of a million tones of metal annually, Terramin Managing Director Kevin Moriarty said.
The miner has also agreed to sell equity to one of China's largest resources firms, China Non-Ferrous Metals Industry, and give it a seat on Terramin's board in exchange for funds.
The sale must be approved by Australia's foreign investment regulators, who are also reviewing a proposed $19.5 billion investment by China Aluminum Co in Rio Tinto Ltd/Plc amid some opposition in Australia to Chinese investment in domestic companies.
On Friday the Australian government blocked the sale of a copper mine to China's Minmetals, citing security concerns given its location near an Australian military installation.
Terramin recently commissioned its Angas mine in Australia, forecast to yield 45,700 tonnes of zinc and 16,500 tonnes of lead concentrate this year.
A final study into the feasibility of the Algerian project will be finished this year, enabling Terramin to seek major funding from smelting firms and additional Chinese investors to underwrite capital costs estimated at under $290 million, Moriarty said.
It was likely to be next year before Terramin seeks most of the funding, hopefully allowing time for metals markets ravaged by the commodities bust to recover, according to Moriarty.
The supply agreement with Transamine covers 100,000 tonnes of zinc and 40,000 tonnes lead concentrates annually, starting once the mine is running in 2011, Moriarty said.
"Both Transamine and NFC are promising to bring in financing via smelters and directly from China," Moriarty said. "The A$46 million buys us time."
Zinc and lead markets have been hit hard by the slump in commodities. Zinc MZN3 is down 44 percent, while lead MPB3 is off 55 percent in the last year.
Transamine will seek to use its offtake rights to access funds from smelting firms to supplement bank finance once development of the mine commences, Moriarty said.
The mine is being designed to initially produce 250,000 tonnes of lead and zinc concentrate containing about 50 percent metal, eventually climbing to 400,000-500,000 tonnes, he said.
Under the terms of the agreement with NFC, Terramin will issue 15.5 million ordinary shares at A$0.65 each to raise A$10.075 million, making the Shanghai-listed firm Terramin's largest shareholder.
Terramin is also entitled to issue $10 million in unlisted, unsecured convertible redeemable notes to Transamine.
Following a decision to mine, Terramin can issue a further $7.5 million of unlisted, unsecured convertible redeemable notes and issue fully paid ordinary shares, Moriarty said.
Terramin has agreed to a five-year lead and zinc concentrate supply pact with commodities trader Transamine for material from the mine, Talma Hamza, which could potentially yield a quarter of a million tones of metal annually, Terramin Managing Director Kevin Moriarty said.
The miner has also agreed to sell equity to one of China's largest resources firms, China Non-Ferrous Metals Industry, and give it a seat on Terramin's board in exchange for funds.
The sale must be approved by Australia's foreign investment regulators, who are also reviewing a proposed $19.5 billion investment by China Aluminum Co in Rio Tinto Ltd/Plc amid some opposition in Australia to Chinese investment in domestic companies.
On Friday the Australian government blocked the sale of a copper mine to China's Minmetals, citing security concerns given its location near an Australian military installation.
Terramin recently commissioned its Angas mine in Australia, forecast to yield 45,700 tonnes of zinc and 16,500 tonnes of lead concentrate this year.
A final study into the feasibility of the Algerian project will be finished this year, enabling Terramin to seek major funding from smelting firms and additional Chinese investors to underwrite capital costs estimated at under $290 million, Moriarty said.
It was likely to be next year before Terramin seeks most of the funding, hopefully allowing time for metals markets ravaged by the commodities bust to recover, according to Moriarty.
The supply agreement with Transamine covers 100,000 tonnes of zinc and 40,000 tonnes lead concentrates annually, starting once the mine is running in 2011, Moriarty said.
"Both Transamine and NFC are promising to bring in financing via smelters and directly from China," Moriarty said. "The A$46 million buys us time."
Zinc and lead markets have been hit hard by the slump in commodities. Zinc MZN3 is down 44 percent, while lead MPB3 is off 55 percent in the last year.
Transamine will seek to use its offtake rights to access funds from smelting firms to supplement bank finance once development of the mine commences, Moriarty said.
The mine is being designed to initially produce 250,000 tonnes of lead and zinc concentrate containing about 50 percent metal, eventually climbing to 400,000-500,000 tonnes, he said.
Under the terms of the agreement with NFC, Terramin will issue 15.5 million ordinary shares at A$0.65 each to raise A$10.075 million, making the Shanghai-listed firm Terramin's largest shareholder.
Terramin is also entitled to issue $10 million in unlisted, unsecured convertible redeemable notes to Transamine.
Following a decision to mine, Terramin can issue a further $7.5 million of unlisted, unsecured convertible redeemable notes and issue fully paid ordinary shares, Moriarty said.
Tuesday, February 3, 2009
Terramin Announces Capital Savings At Algerian Zinc Project
Australian lead and zinc miner Terramin has announced that the pre-feasibility study for its Algerian zinc project at Tala Hamza is almost complete. Capital costs for the mine have been reduced by at least 20% through savings on infrastructure costs due to its favourable location close to port, town, water and power supplies.
At this stage the study shows capital of less than US$290 million, compared with $356 million in the scoping study. Terramin has a 65% interest in the project and will arrange the financing facility for the holding company.
The pre-feasibility study has benefitted from detailed quotes by engineering companies with experience in the region and incorporates a substantial contingency.
Financing will not be required until 2010, however Terramin has been supporting due diligence by potential facility providers who have contacted the Company to express interest. These include large China and East Asia zinc producers interested in offtake in return for funding. Four funds whose mandate includes or specifies a North Africa focus are also advancing their involvement with the project and Terramin, stating that they have been able to invest only a small portion of available funding in the region.
The company is negotiating funding with Asian and Middle East-based parties and has been contacted by Algerian and foreign banks wanting to invest in the project because it is one of only a few that remain viable in current conditions.
Executive Chairman of Terramin, Dr Kevin Moriarty, said that Terramin and its Algerian partners expect no difficulty in financing the project. “Our banks and fund managers have told us that good projects can be funded,” said Dr Moriarty, “more than $1 billion in investment funds is available for projects in the region. We expect to be announcing ongoing funding in the near future.
He cautioned that, “Shareholders should not be overly influenced by the views of analysts focused on the big financial centres. An institutional broker with Middle East and North African representation is soon to commence coverage of Terramin, and that should provide a more reliable view of regional financial backing for the project. Growth will resume and Terramin is well positioned with low cost projects that are attracting support from nvestors looking to the recovery.”
Source: Proactive Investors
At this stage the study shows capital of less than US$290 million, compared with $356 million in the scoping study. Terramin has a 65% interest in the project and will arrange the financing facility for the holding company.
The pre-feasibility study has benefitted from detailed quotes by engineering companies with experience in the region and incorporates a substantial contingency.
Financing will not be required until 2010, however Terramin has been supporting due diligence by potential facility providers who have contacted the Company to express interest. These include large China and East Asia zinc producers interested in offtake in return for funding. Four funds whose mandate includes or specifies a North Africa focus are also advancing their involvement with the project and Terramin, stating that they have been able to invest only a small portion of available funding in the region.
The company is negotiating funding with Asian and Middle East-based parties and has been contacted by Algerian and foreign banks wanting to invest in the project because it is one of only a few that remain viable in current conditions.
Executive Chairman of Terramin, Dr Kevin Moriarty, said that Terramin and its Algerian partners expect no difficulty in financing the project. “Our banks and fund managers have told us that good projects can be funded,” said Dr Moriarty, “more than $1 billion in investment funds is available for projects in the region. We expect to be announcing ongoing funding in the near future.
He cautioned that, “Shareholders should not be overly influenced by the views of analysts focused on the big financial centres. An institutional broker with Middle East and North African representation is soon to commence coverage of Terramin, and that should provide a more reliable view of regional financial backing for the project. Growth will resume and Terramin is well positioned with low cost projects that are attracting support from nvestors looking to the recovery.”
Source: Proactive Investors
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