Resources Correspondent
SWISS-based J&W Holdings looks set to buy Anglovaal Mining's (Avmin's) 90% stake in Chambishi Metals, and plan s to grow its business further in Africa.
On Monday the company, managed by London-based Alferon Management, signed a memorandum of understanding with Avmin.
The memorandum states that both parties intend to complete a transaction for the sale of Avmin's Zambian copper and cobalt operation Chambishi by the end of May.
"Ramcoz and Chambishi are stepping stones. We are actively looking at other assets in Africa," said Jai Saraf, chief financial officer of J&W Holdings.
J&W Holding's main shareholders are three families from the former Soviet Union, and Saraf said the company had grown quickly in the past 10 years with businesses in the former Soviet Union.
"We are looking at assets outside the former Soviet Union. We have been looking at assets in Africa," said Saraf.
He would not give any further details of other mining projects in Africa the company might be eyeing.
In March, the Zambian government, in an unexpected development, sold the former Ramcoz copper mine to J&W Holdings. This came as a surprise to Avmin which had been looking to secure the mine it offered synergies for the firm, which would have refined copper concentrate from Ramcoz at Chambishi.
Now, it looks as if J&W Holdings will benefit from these synergies. Chambishi has an annual production capacity of about 6000 tons of cobalt and 10000 tons of copper.
J& W Holdings is managed by Alferon, which was set up specifically to manage J&W's resources companies. The majority of those companies are based in the Commonwealth of Independent States, mainly in Kazakhstan.
The J&W group is a major investor in the natural resources sector in the former Soviet Union and its operations in the Commonwealth of Independent States employ about 60000 people and have annual turnover of $1bn.
TNK KazChrome, the world's biggest ferrochrome producer, is a J&W firm.
Other firms in the group include Aluminum of Kazakhstan, Sokolovsko-Sarbayskoye Mining and Concentration Plant Kazakhstan's largest iron ore producer with annual output of 31-million tons and Eurasian Energy Corporation, which is Kazakhstan's largest power supplier.
The group also has interests in coal and oil and gas.
"J&W Holdings has embarked on a management strategy to diversify the group and capitalise on the its strength in the natural resources sector," said Saraf.
He said the company had built up expertise in ferrochrome and iron ore mining and metals operations, with technological expertise on both the mining and smelting side.
"We have the expertise to take over assets and turn them around quickly," said Saraf.
Apr 11 2003 07:09:35:000AM Julie Bain Business Day 1st Edition
Friday
11 April 2003
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