RungePincockMinarco’s (RPM) global Advisory division performed an integral role in the global team supporting China Molybdenum’s (CMOC) purchase of two worldclass assets from Anglo American and Freeport-McMoran totalling approximately $4.1 billion. CMOC is acquiring Anglo’s niobium and phosphate business and a controlling indirect interest in Freeport’s worldclass Tenke Fungurume copper and cobalt mine in the DRC.

The Anglo assets include six resources and three reserves and are unique in that they include not just the mining and concentrate production but also the downstream product generation. Combined the assets are the number one producer of high analysis fertilizer products in Brazil and the second largest ferroniobium producer globally (out of three majors).

The Freeport assets include a total of 18 separate resource areas (models) and 18 open pits with 67 push backs planned over the 37 year life of the project. The approximately 800 million tonnes of future open cut and underground resources which are still at a scoping study stage highlight the upside potential of this mine which is the largest copper mine in the DRC.

RPM’s engagement with CMOC for both projects commenced with RPM providing technical due diligence and technical transaction support at CMOC’s Phoenix headquarters and then transitioned to RPM undertaking the compliance work where its key task was to highlight and present (in line with recommended guidelines of JORC 2012) the underlying technical value of the assets to investors and navigate the Hong Kong Stock Exchange clearance process.

The deliverables provided by RPM for both projects included due diligence reports, independent estimation and reporting of Mineral Resource and Ore reserves to JORC 2012 with accompanying production schedules and compilation of the Competent Persons Reports. RPM’s work culminated last week with the public release of compliance documentation on the Hong Kong and Shanghai security exchanges.