Mining Weekly
MINING INDABA PREVIEW
International legal practice Norton Rose Group is confident that its fifth African office opened in Casablanca, Morocco, in October last year, will strengthen its African footprint.
“Norton Rose has been advising on deals in Francophone and sub-Saharan Africa for many years, particularly in the mining sector, and its international offering is enhanced by these local capabilities,” says the company’s global head of mining, Martin McCann.
The practice, which will be attending this year’s Investing in African Mining Indaba, also has other African offices in Cape Town, Durban and Johannesburg, as well as an associate office in Dar es Salaam.
“The newest office is likely to be of particular interest to those companies looking to invest in phosphate mining in Morocco,” notes McCann.
He says the practice’s presence at the eighteenth annual Mining Indaba fits in with its drive to build on its existing activities in Africa.
“With about 6 500 visitors interested in mining in Africa at the indaba, we will be building stronger client relationships and networking with mining companies looking to raise debt or equity finance for their mining projects, as well as the funders who will be investing in these projects,”
He points out that significant potential lies in the development of major iron deals on the West Coast of Africa.
However, nationalisation and expropriation of mining assets are factors that could ward off investors.
“Companies must enter into contracts having taken an early view as to the likely movement of ownership structures across Africa before starting to develop mines. Contracts should be drawn up on the basis that there will be changes in the ownership structure. Upcoming elections and trends in changes of ownership across Africa should be closely monitored and considered,” McCann warns.
Norton Rose advised South African financial services group Investec on local miner Gold One’s financing arrangements for its acquisition of independent resource company Rand Uranium.
Gold One completed the acquisition of Rand Uranium for $250-million, after fulfilling all the conditions precedent.
The firm is also advising the mandated lead arranger of project finance for platinum miner Platinum Group Metals’ 74%-owned Western Bushveld Joint Venture Project 1 platinum mine, in South Africa, as well as advising Mineral Deposits on the financing and development of the Grande Côte mineral sands project, in Senegal.
Further, Norton Rose is advising various mining companies on the impact of the new mining code in Guinea, which gives the government a 15% share in mining companies and the option to buy a further 20%, while demanding greater financial transparency.
The code requires companies to carry out environmental and social impact studies before they are granted mining permits.
Guinea’s Prime Minister, Mohamed Said Fofana, stated last September that the new mining code would curb corruption and make more money available for development.
Further, Norton Rose is providing advice to a mining company on financing for the development of a cobalt/nickel/manganese project in Cameroon. The legal practice is also advising Africa-focused copper miner Anvil Mining in its negotiations with the Democratic Republic of Congo’s State-owned mining body Gécamines. This pertains to Chinese group Minmetals Resources’ R1.3-billion takeover offer to secure Anvil.
Further afield, Norton Rose has advised the sponsors of the $1.55-billion 2 000 MW Sur independent power project, in the Sultanate of Oman.
Sur is the largest gas-fired power project in Oman. Senior debt has been provided by the Japan Bank for International Cooperation, the Bank of Tokyo-Mitsubishi UFJ, KfW IPEX-Bank, Mizuho Corporate Bank, Standard Chartered Bank, the Sumitomo Mitsui Banking Corporation and the Sumitomo Trust & Banking Company, supported by the Japanese government’s incorporated administrative agency, Nippon Export & Investment Insurance.
The project reached financial close in November last year.
Norton Rose’s Australian office has advised Japan-based alcohol manufacturer Asahi Group Holdings subsidiary Asahi Holdings Australia in connection with its acquisition of Australian spring water bottling com- pany Mountain H2o.
The transaction was implemented by way of a share acquisition. It is subject to satisfaction of conditions precedent, including approval by the Australian Competition and Consumer Commission.
Norton Rose Australia is also advising Hong Kong-based Junefield Holdings on investments with a combined value of about $52-million in the South American mining sector.
Under the transaction, Junefield will acquire about 16.8% of ASX-listed exploration and resource development company Latin Resources.
In addition, Junefield will take advantage of an option to buy up to 70% of Latin Resources’ Mariela and Dylan concessions, in Arequipa province, Peru, by funding all activities leading to completion of the bankable feasibility study or a total cost of $35-million.
Latin Resources has reported that the Mariela and Dylan concessions have significant potential for iron, copper and gold mineralisation.
The transaction was announced in November last year.
Edited by: Tracy Hancock
