Billiton Funds Exploration in Zambia for Foothold in Region
London, Nov. 15 (Bloomberg) -- Billiton Plc, the U.K.'s third-
largest mining company, said it's likely to explore for copper in
Zambia and join rivals such as Anglo American Plc in reviving what
was once among the world's biggest copper industries.
Billiton agreed to buy $645,000 worth of shares in Canada's
First Quantum Minerals Ltd., which already operates mines in
Zambia, to fund exploration of the Mwinilunga and Luamata
properties. Billiton has the right to buy as much as 70 percent in
any project if it pays for exploration and development, with First
Quantum able to earn its stake through future profits.
While a small investment, the agreement will give Billiton a
foothold in an area that holds some of the world's best copper
deposits, with the Zambian Copperbelt stretching into the war-torn
Democratic Republic of Congo. Already companies have pledged
almost $2 billion in investment that may quadruple Zambia's copper
output to 1 million metric tons within five years.
``Zambia is a springboard into the DRC,'' said Allan Cooke,
an analyst at Rice Rinaldi Securities. ``If you want to get into
that region you'd be better off starting in Zambia than in the
DRC.''
Billiton shares fell as much as 6 pence, or 2.3 percent, to
254p, giving the company a market value of about 5.9 billion
pounds ($8.4 billion).
--Antony Sguazzin in the Johannesburg bureau (27 11) 784 9944 or
asguazzin@bloomberg.net/tc |
