Shareholders in Katanga Mining have approved the merger with Nikanor to create what could become the largest cobalt and copper producer in the world.
The deal will draw together two previously independently-owned mining sites located next to each other in the Democratic Republic of Congo (DRC) to create a major single-site mining operation.
The enlarged complex will keep the name Katanga Mining and has a targeted annual output of close to 400,000 tonnes of copper and 40,000 tonnes of cobalt by 2011.
In August 2007, Camec, a rival mining firm also operating in the DRC made a bid to takeover Katanga Mining. Yet, following various disputes with the Congolese authorities over the validity of its mining licences it dropped its bid. It does, however, still hold a 22% stake in Katanga.
Last Updated January 18, 2008
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