May 17, 2020

One for sorrow, $2.9billion for Joy: Komatsu to buy U.S rival Joy Global

Joy Global
Komatsu
Mining equipment manufacturing
Surface
Dale Benton
1 min
One for sorrow, $2.9billion for Joy: Komatsu to buy U.S rival Joy Global
The Japanese mining equipment manufacturers Komatsu Ltd has entered an agreement to purchase Joy Global Inc, as the company bids to increase its presenc...

The Japanese mining equipment manufacturers Komatsu Ltd has entered an agreement to purchase Joy Global Inc, as the company bids to increase its presence in the mining industry.

Taking into account the Milwaukee based company’s current debts, the deal will be worth $3.7billion in total.

The deal comes at a time when the dollar has fallen 10 percent against the yen this year, encouraging Japanese companies to conduct international deals.

Demand for mining equipment has also fallen, with Komatsu specialising in the production of surface-only mining equipment.

With the declining demand, now is a “good time” for Komatsu to enter the underground mining business.

"The mining market is near the bottom now. Now is the good time (to do the acquisition)," Komatsu Chief Executive Tetsuji Ohashi told reporters.

 "We have solid enough financial soundness to withstand a large scale acquisition."

Read the July issue of Mining Global Magazine!

Be sure to follow @MiningGlobal for news and latest updates.

Share article

Jun 11, 2021

Ivanhoe Mines copper set for China with Zijin, Citic deal

Copper
Zijin Mining
Ivanhoe Mines
CITIC Metal
2 min
Ivanhoe Mines has signed a deal with China’s Zijin Mining’s subsidiary and trader CITIC Metal

Ivanhoe Mines has inked significant deals with JV partner Zijin Mining and its subsidiary CITIC Metal to sell each 50% of the copper production from the recently launched first phase of its Kamoa-Kakula mine in the Democratic Republic of Congo (DRC)

The copper concentrate and blister copper off-take agreements will see wholly-owned Zijin unit Gold Mountains (H.K.) International Mining Co Ltd and CITIC Metal split the initial offtake from Kakula.

The DRC government has authorised exports to international markets and Ivanhoe has also announced a 10-year processing deal to utilise the DRC Lualuba smelter owned by CNMC.

CITIC Metal becomes Ivanhoe’s largest shareholder

Following a new share agreement, CITIC Metal will come to own 19.9% of Ivanhoe Mines’ issued and outstanding common shares when the placement is completed, establishing CITIC Metal as Ivanhoe’s largest single shareholder. Chairman and Founder Robert Friedland will be Ivanhoe’s second-largest shareholder, with over 17% shareholding.

Ivanhoe Mines intends to use the proceeds for the advancement of the company’s world-scale mine development projects in Southern Africa ─ Kamoa-Kakula, Platreef and Kipushi ─ and also for working capital and general corporate purposes.

blister copper ingot - Ivanhoe Mines

CITIC Metal part of a bright future with Kamoa-Kakula’s potential to become the world’s highest-grade major copper mine

Friedland said the agreement with CITIC Metal is the culmination of a 15-year relationship between the leaderships of Ivanhoe Mines and CITIC.

“In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast copper-gold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and CITIC established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies.

“For some time now, the board of directors and senior management of today’s Ivanhoe Mines have been evaluating potential transactions that would combine the critical elements needed for Ivanhoe to advance the development of our exceptional assets that have been established in Southern Africa in recent years,” Friedland added.

“A fundamental, qualifying condition has been that any new partner must be complementary to our established partners, Zijin and the Japanese consortium led by ITOCHU Corporation. We are confident that CITIC Metal shares our vision and has the experience and financial resources to help us advance our three projects to production, creating value for Ivanhoe’s stakeholders in the DRC and South Africa, and our international shareholders.”

Robert Friedland, Ivanhoe Mines

Share article