Nikanor stalks Katanga after Glencore deal

摘要

ANALYSTS believe Congolese-focused miner Nikanor pic is the most likely suitor for rival, Katanga Mining Ltd. Nikanor-linked Glencore International AG has signed a 150 million US dollars loan agreement and 10-year offtake agreement with Katanga. Blackmont Capital analyst George Topping said there were synergies in the Nikanor and Katanga's copper-cobalt projects. Glencore emerged with effective control of Nikanor in June, after an earlier 1.67 billion US dollars takeover bid for the company was transformed into a private share placement (representing 45 percent of Nikanor's share capital), and a 100 percent offtake agreement. Nikanor's KOV project neighbours the Katanga's Kamoto project, near Kolwezi. The total cobalt market will be about 80,3001 by 2010, according to the UK-based Cobalt Development Institute, giving Glencore control of about 42 percent of the market by 2011. Mr Topping expected Nikanor would make its bid after the Democratic Republic of the Congo government finished a review of 60 mining leases signed with government mining companies.