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Billiton to acquire La Granja Copper Property
Billiton plc's wholly-owned subsidiary Billiton Investment 9 B.V. has agreed to acquire the La Granja Copper Property, a large copper perphyry resource, in northern Peru from a subsidiary of Cambior Inc. of Canada for a net consideration of US$35m. Following the signing of a formal agreement, Billiton intends to undertake testwork to evaluate heap and dump leaching potential and the potential application of Biocop, Billiton's proprietary Biotechnology. To date, approximately US$61m has been spent by Cambior on the La Granja property with processing testwork focused on conventional flotation to produce saleable concentrates.
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Billiton's Rio Algom re-assesses reserves
Billiton subsidiary Rio Algom has increased its proven and probable mineral reserves at the Antimina project after a total reserve re-evaluation which included additional diamond drilling information obtained during the current project construction phase. The revised proven reserves are 313 million tonnes with a grade of 1.30% copper, 1.06% zinc, 14.13gm/t silver and 0.030% molybdenum and revised probable reserves are 246 million tonnes with a grade of 1.15% copper, 0.99% zinc, 13.18gm/t silver and 0.029% molybdenum. The project is on schedule and on budget and full production is expected by the end of 2001. Upon completion it is expected to be the seventh largest cooper producer and third largest zinc producer in the world.
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Billiton reshuffles is top structure
Billiton has restructured its top executive responsibilities to allow the group to focus more intensely on its core mining business, while at the same time remaining on the lookout for above-average opportunities. The current commodity structure will remain in place with each divisions executive director reporting to chairman and CEO Brian Gilbertson. Mike Salamon (director responsible for nickel, steel & ferroalloys and titanium) will take over the promotion of Billiton Metals and Mining related initiatives across all commodities, as well as safety, health and environmental matters. Mick Davis (currently in charge of finance and coal) will be responsible for finance, marketing, e-business, exploration and development, biotechnology and new business initiatives. Steve Kesler (currently in charge of new business, exploration and technology) will focus on base metals. David Munro will retain his responsibilities for aluminium. Marius Kloppers (previously CE of 60% held subsidiary Samancor Manganese) will join the executive committee with responsibilities for coal and manganese. All the changes are effective from 1 Jan 01.
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Billiton enters Zambian copper exploration venture
Billiton has signed a letter of intent with First Quantum Minerals Ltd regarding First Quantum's Mwinilunga and Luamata properties in Zambia. The properties are contiguous and are located 500km north-west of Lusaka and are deemed prospective for the discovery of new copperbelt style orebodies. Billiton will subscribe for 222 222 common shares in Quantum at C$4.50 per share (for a total consideration of US$670 000). A minimum of US$600 000 of the funds will be used by First Quantum for further exploration of the properties. Within 60 days of the funds being spent, Billiton can elect to take a first option wherein it can earn a 51% interest in a maximum of 3 selected project areas, each up to 500km2 in extent, by spending US$2.4m over four years. Billiton can elect to exercise a second option to earn a further 19% in any or all of the projects by providing financing for all further work through to commercial production. First Quantum's share of the expenditure will be paid pro rata from its portion of cash flows. Phelps Dodge Exploration Company holds a one time back-in right to acquire a 20% interest in the Mwinilunga and Luamata prospecting licenses, upon First Quantum completing expenditure of US$5m and US$2m respectively. In the event that the right is exercised, both Billiton's and First Quantum's interest would be reduced accordingly on a pro-rata basis. First Quantum will be the initial project operator but Billiton has the right to replace First Quantum during the earn-in or joint venture phases.
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Billiton and Eastmain in Canadian joint venture
Billiton subsidiaries Billiton Metals Canada and Billiton Resources Canada have reached an agreement with Toronto listed Eastmain Resources Inc, which will see Billiton participate in the exploration of the Railway project in Brunswick, Canada. Billiton will purchase 1 000 000 units of Eastmain at C$0.70 per unit (which consists of one common share in Eastmain and one half of a share purchase warrant in Eastmain -- the warrant entitles the holder to buy an additional Eastmain share at $C0.80c within two years). Eastmain will use the proceeds to complete a surface exploration and drill programme on the Railroad property for base metal prospects. Billiton has the right to earn a 50% interest in the property through incurring additional working expenditure of C$1.5m over three years and can increase this to 70% by funding the project to production.
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Billiton in black empwerment coal deal
Anglo division Anglo Coal and Billiton subsidiary Ingwe Coal Corp have signed a black empowerment deal with Eyesizwe Coal (Pty) Ltd for 66% of Newcoal's assets for a consideration of R360m. Anglo Coal will retain 11% of Newcoal, Ingwe 9%, PricewaterhouseCoopers Corporate Finance 4% and the Eyesizwe Coal Employees Share Trust 10%. Both parties have agreed to retain their interests for a minimum of two years. Newcoal is a company formed to house coal interests of Anglo Coal and Ingwe (Malta Coal, New Clydesdale Colliery, Arnot Underground Colliery, Glisa Colliery and a shareholding in the Richards Bay coal terminal) as well as additional coal reserves from GFSA (bringing total reserves to 5 billion tons). Eskom has agreed to cede its coal supply agreements in respect of the Malta and Arnot power stations to Eyesizwe. Newcoal will be the fourth largest coal producer in South Africa with production of about 18 million tons per annum. Debt financing has been provided by ABSA and NIB and is secured against the cash flow of Newcoal.
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Billiton price rises 11.24% on strong volumes
Billiton's share price increased by 11.24% on 31 Oct 00, as a result of heavy volumes traded. This was mainly as a result of Alcoa, the world's largest aluminium producer which had a strong bull run in the US. The performance was also as a result of the rebounding aluminium price. Billiton's share has a high level of gearing to the aluminium price, given the large proportion of its portfolio devoted to aluminium production.
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Billiton shareholders approve resolutions
The majority shareholders have approved the resolutions at the AGM held on 31 Oct 00. It was also noted the expansion of the Cerro Matoso nickel smelter in Colombia is ahead of schedule, with first metal expected by the end of 2000 - well before the scheduled start date of Apr 01.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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