China Molybdenum takes full control of ex-Dreyfus metals unit for $518 million

Processing facilities at Tenke Fungurume mine. (Image courtesy of Lundin Mining.)

China Molybdenum Co., majority owner of a huge copper-cobalt mine in the Democratic Republic of Congo, said on Thursday it had completed the acquisition of all of IXM, formerly the metals business of trading house Louis Dreyfus, for $518 million.

“The metal trading business will become an important part of the company’s businesses … and improve the international competitiveness and influence in the industry of the company,” China Moly said in a statement to the Hong Kong stock exchange.

The Chinese firm already had a roughly 45% indirect interest in IXM through NCCL Natural Resources Investment Fund, which wrapped up its purchase of Louis Dreyfus’ metals business in May 2018 for $466 million. The unit’s name was changed to IXM later that month.

China Anxing Asset Management held the other 55% in NCCL, filings show.

China Moly, based in central China’s Henan province, first announced its intention to buy the remainder of IXM in October last year. The deal, which closed on July 24, had to pass a number of regulatory checks, most recently winning approval from Russia’s Federal Antimonopoly Service.

China Moly in January agreed to boost its stake in the DRC’s Tenke Fungurume mine, one of the world’s largest copper and cobalt deposits, to 80%.

(By Tom Daly; Editing by David Evans)

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