RMMI expands footprint into Eastern Europe with mining acquisition in Armenia
RAK Minerals and Metals Investments (RMMI) today announced the acquisition of Armenian mining firm TSCC Armenia, successfully expanding its footprint into Eastern Europe.
United Arab Emirates: Wednesday, April 09 - 2008 at 15:51 PRESS RELEASE
The 100% acquisition covers three mining complexes spread across two regions, North and South Armenia, and includes copper and other polymetallic minerals. RMMI has earmarked $200m over the next two years to fund the acquisition and set up a concentrate plant in the country.
Dr. Khater Massad, CEO RAK Investment Authority (RAKIA), Chairman, RMMI and Advisor to H.H. Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler & Crown Prince of Ras Al Khaimah, said, 'Armenia is rich in natural resources and well located between the markets of Asia and Europe. RMMI's investment is the first of many opportunities for RAKIA and Ras Al Khaimah, and we hope to extend this to include real estate, construction and similar ventures that support economic growth.'
Mr Madhu Koneru, Managing Director, RMMI said, 'Our mission is to establish RMMI as a world-leading mining solutions provider in the metals and minerals industry through strategic investments across the entire mining value chain. This acquisition in Armenia is a significant step in extending RMMI's geographical spread equitably and establishes our foothold in Eastern Europe. Our strategy is to have a balanced portfolio across Africa, Asia Pacific and Eastern Europe, within range of our target markets of China, India and the Middle East.'
As part of the deal, TSCC's mines in Armenia will now be operated under RMMI. This includes two complexes in North Armenia in Karnut (135 sq.km.) and Prevolnoye (37 sq.km.), and in South Armenia in Larneshan (167 sq.km.). All three semi-brownfield complexes are in close proximity to existing plants, and in geological analogy to operational mines in the area. The base metal profile is largely copper, with other polymetals associated with copper deposits including lead, zinc, molybdenum. Within the complexes, some deposits have also been identified as auriferous.
In the next two years, RMMI plans to build a concentrate plant in South Armenia's Larneshan region to process both copper and polymetallic ores into concentrates. RMMI's ownership of the natural resources, as well as the capability to convert ores into concentrates, also opens up the options for the setting up of smelters in the future.
Demand for copper in Asia is likely to remain firm, as transport and energy infrastructure projects in China and India are estimated to require large quantities. Fuelled by a recent supply squeeze, copper for three-months delivery on the London Metal Exchange closed at $8,660 a tonne on Friday, April 5, up $100 from Thursday.
Notes and media contacts
About RAK Minerals and Metals Investments (RMMI)
RMMI is the first Middle Eastern mining company with a global reach, set up under the patronage of HH Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah. RMMI is a 50:50 joint venture between RAK Investment Authority (RAKIA), and Trimex Group, an independent minerals company with over 50 years of combined mining experience.
RMMI targets mid-sized companies and independent mine owners, one of the fastest growing segments in the industry today, and invests to operate the mines. RMMI's investments are long-term in outlook, capitalising on the vast experience of the team to operate the mines; this strategy distinguishes RMMI from asset managers and investment funds. Focus areas for RMMI are: base metal minerals, energy minerals and industrial minerals, to cater to the growing demand from China, India and the Middle East.
For additional information, please contact:
Ross Bethell, onsite in Singapore
ReputationInc for RMMI
Mobile: +44 751 597 4925
http://www.ameinfo.com/152938.html
