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NEWS-LEADING DEVELOPMENTS tation process to take place between these three groups and that the three groups had agreed that the process would take no more than 60 days. The three groups "re-committed to engage constructively for the benefit of all stakeholders and will communicate progress updates as and when appropriate," the Amplats statement said. Amplats is 79.8% owned by Anglo American plc and is the world's largest producer of platinum. Apart from the mines that are the focus of the proposed restructuring, Amplats has three other 100%owned and managed mines in South Africa and one in Zimbabwe, and it has two 100%-owned development projects in South Africa. It has non-managing, 50% interests in four other mines in South Africa and non-managing 49%, 42.5%, and 33% interests, respectively, in three other mines in South Africa. It owns and operates 14 concentrators and three smelting complexes, and it owns and operates a base metals refinery and a precious metals refinery. The primary role of the base metals refinery is to separate precious metals from the smelter products and provide feed for the precious metals refinery. First Quantum and Inmet Argue Takeover Bid Inmet Mining's board of directors recommended on January 22, 2013, that its shareholders reject an unsolicited offer from First Quantum that valued Inmet at about C$5.1 billion in cash and First Quantum shares. Central to Inmet's argument was its conviction that the First Quantum offer did not adequately compensate Inmet shareholders for the company's low-risk asset base and its strong prospects for growth and value creation at its 80%owned Cobre Panama project in Panama. The Inmet statement included some disparaging comments regarding First Quantum, including, "First Quantum has no experience developing projects the size of Cobre Panama and no relevant experience in Latin America,"..."First Quantum has a track record of repeatedly underestimating development costs and overestimating production expectations," and... "The First Quantum Offer does not compensate Inmet shareholders for the inherent risks in First Quantum shares." On January 24, First Quantum responded with some disparaging comments of its own regarding the Inmet Director's Circular, including, "It does not identify any www.e-mj.com compelling alternative to our proposal,"..."It presents generic and rehearsed arguments to support its case but ignores the overriding commercial logic of a combination," and..."It discloses that Inmet has established an electronic data room and granted due diligence access to chosen parties after having repeatedly denied to First Quantum the opportunity to conduct even the most cursory due diligence review. This, in spite of the fact that First Quantum is the only party to have placed a firm strategic alternative on the table by making the commitment of a definitive public offer for the company, with compelling benefits for all shareholders." The First Quantum offer was due to expire February 14, 2013, unless extended or withdrawn. Inmet said it was looking for valueenhancing alternatives to the First Quantum offer. Cobre Panama is a $6.1-billion, openpit project currently in the early stages of construction, with startup scheduled for late 2015. Production of metal in concentrates over a mine life of more than 30 years is scheduled to average 266,000 mt/y copper, 2,900 mt/y molybdenum, 87,000 oz/y gold, and 1.5 million oz/y silver. Inmet has three active mining operations: the Çayeli underground copper and zinc mine in northeastern Turkey, the Las Cruces open-pit copper mine in southern Spain, and the Pyhäsalmi underground copper and zinc mine in central Finland. First Quantum's operating mines are the Ravensthorpe laterite nickel mine in Western Australia, the Kansanshi open-pit copper-gold mine in Zambia, the Guelb Moghrein open-pit copper-gold mine in Mauritania, and the Kevista open-pit nickel-copper-precious metals mine in Finland. Its development projects include the Sentinel copper project in Zambia and the Haquira copper project in Peru. Top Management Changes at Anglo American and Rio Tinto In January 2013, Anglo American and Rio Tinto, two of the world's largest diversified, multi-national mining companies, announced changes in top executive management. On January 8, Anglo American announced the appointment of Mark Cutifani as the company's chief executive, with effect from April 3, 2013. He has been CEO of AngloGold Ashanti since 2007. He replaces Cynthia Carroll, who announced her resignation as Anglo American's chief executive on October 26, 2012, but who agreed to remain in her position until a successor was appointed and an appropriate transition has taken place (E&MJ;, November 2012, p. 4). Prior to becoming CEO of AngloGold Ashanti, Cutifani was the COO of CVRD Inco. He started his career in the coal and gold mining industries in Australia and has experience across a wide range of com- Aerial view of coastal facilities serving the $6.1-billion Cobre Panama mine project, scheduled to begin production in late 2015, with a mine life estimated at more than 30 years. (Photo courtesy Inmet Mining) FEBRUARY 2013 • E&MJ; 5