Inmet Mining confirmed yesterday that contrary to certain press reports it has not agreed to enter into any transaction with Korea Resources Corp (KORES) under which Korea Resources would purchase Inmet common shares. While Inmet and KORES have been in discussions concerning a potential transaction including for joint investments in projects, no agreements have been concluded in that regard nor have any intentions been finalised to enter into an agreement at a later date. However, Inmet does intend to enter into a strategic alliance agreement with KORES under which they will establish a protocol to mutually pursue common shared interests within the global mining industry.

The parties will endeavour to agree on criteria for the types of initiatives that would be the subject of co-operation under the alliance. The protocol for the operation of the alliance will also provide for the establishment of, and set forth the terms of reference for, a strategic alliance committee through which Inmet and KORES will interact in connection with alliance related issues. The precise forms of co-operation between Inmet and KORES are expected to evolve over time as circumstances dictate and opportunities arise. Each of them recognises the other as a preferred partner for the co-operative development of opportunities, however, any arrangements between them will not necessarily be exclusive to the other.

Inmet is a Canadian-based global mining company that produces copper, zinc and gold. It has interests in five mining operations in locations around the world: Çayeli, Las Cruces, Pyhasalmi, Troilus and Ok Tedi. It also has a 100% interest in the Mina de Cobre Panama development property in Panama. www.inmetmining.com

KORES was incorporated in 1967 and is especially focused on securing supplies of bituminous coal, uranium, iron, copper, zinc and nickel, which the government has selected as the six strategic minerals. KORES President Shin-Jong Kim explains “While we depend on foreign countries for 97% of the energy and mineral resources Korea uses, independent resource developments are one of our key tasks for our nation’s economic development.”

Uranium and bituminous coal account for 77% of domestic energy production and iron, aluminium, zinc, copper, and graphite are “our necessary resources because they are raw materials that are essential in our daily lives such as in producing highly technology demanding materials like car, TV, and mobile phone. Unfortunately, we depend on the foreign countries for its supply. This is the main reason why we are devoting ourselves to turn Korea into a resource-rich country. KORES has made the next goal to get into the global top 20 mining company through relentless challenges and innovations.” www.kores.or.kr