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Johannesburg - South African miner Metorex [JSE:MTX] said on Tuesday that it had received a firm offer from China's Jinchuan Group, trumping a bid by Brazilian giant Vale SA and sending its share price higher.
Vale, the world's largest iron ore producer, seemed unlikely to be drawn into a bidding war after its chief financial officer earlier told Reuters in London that it would stick with its bid.
But Vale was given eight business days to match or better the Chinese offer for the South African-listed copper and cobalt miner.
Jinchuan, China's dominant nickel producer, added almost 22% to Vale's offer to one of R8.90 per share for a cash bid at current exchange rates of about $1.32bn.
It is the latest chapter in the saga of the scramble for African resources by Chinese and Brazilian companies hungry for commodities to drive their own growth.
Metorex said it had not yet approved any agreement in relation to the Jinchuan offer, but the two companies said in a joint statement that the miner already had the firm backing of shareholders representing 8% of Metorex voting rights.
Jinchuan said in a separate statement that Metorex had deemed its offer superior.
Metorex is seen as a prized asset for a number of reasons. The winner will get exposure to copper and cobalt resources in Zambia and the Democratic Republic of Congo, at a time when the outlook for both commodities is bullish.
Metorex's share price soared nearly 7% on the news to R8.60.
Vale, the world's largest iron ore producer, seemed unlikely to be drawn into a bidding war after its chief financial officer earlier told Reuters in London that it would stick with its bid.
But Vale was given eight business days to match or better the Chinese offer for the South African-listed copper and cobalt miner.
Jinchuan, China's dominant nickel producer, added almost 22% to Vale's offer to one of R8.90 per share for a cash bid at current exchange rates of about $1.32bn.
It is the latest chapter in the saga of the scramble for African resources by Chinese and Brazilian companies hungry for commodities to drive their own growth.
Metorex said it had not yet approved any agreement in relation to the Jinchuan offer, but the two companies said in a joint statement that the miner already had the firm backing of shareholders representing 8% of Metorex voting rights.
Jinchuan said in a separate statement that Metorex had deemed its offer superior.
Metorex is seen as a prized asset for a number of reasons. The winner will get exposure to copper and cobalt resources in Zambia and the Democratic Republic of Congo, at a time when the outlook for both commodities is bullish.
Metorex's share price soared nearly 7% on the news to R8.60.
