Business

China's Minmetal buys Anvil Mining for $1.3bn

  • 30 September 2011
  • From the section Business
Shanghai skyline
Image caption China is the world's largest consumer of metals as it fuels its rapid industrialisation

China's Minmetal Resources has agreed to buy copper miner Anvil Mining, giving it three copper mines in Africa.

Minmetals, which is a unit of China's largest metals traders, will pay about $1.3bn (£830m) for the acquisition.

That would amount to a 39% premium on Anvil's closing share price on Thursday in the Toronto stock exchange.

China has been buying up resources around the world from copper to zinc, to support its rapid growth.

"It is very clear that Minmetals has a mandate to make mining investment outside of China," said Andrew Driscoll, head of resource research at CSLA.

Minmetals, which is based in Hong Kong, is backed by the Chinese government.

The Anvil acquisition will give it three copper mines in the Democratic Republic of Congo.

One of those mines, the Kinsevere mine, is expected to produce 60,000 tonnes of copper cathode a year, Minmetal said in a statement.

Anvil is listed in both Sydney and Toronto. The bid from Minmetals is subject to approval from the Australian government.