RungePincockMinarco (RPM) is proud to announce that its global Advisory division performed an integral role in the global team supporting China Molybdenum’s (CMOC) purchase of two world class assets from Anglo American Plc (Anglo) and Freeport-McMoran Inc (Freeport) totalling approximately USD$4.1 Billion.
CMOC are acquiring Anglo’s Nobium and Phospates business and a controlling indirect interest in Freeport’s world-class Tenke Fungurume copper and cobalt mine in the DRC.
The Anglo assets include six resources and three reserves and are unique in that they include not just the mining and concentrate production but also the downstream product generation. Combined the assets are the number one producer of high analysis fertilizer products in Brazil and the 2nd largest Ferroniobium producer globally (out of 3 majors).
The Freeport assets include a total of 18 separate resource areas (models) and 18 open pits with 67 push backs planned over the 37 year life of the project. The approximately 800 million tonnes of future open cut and underground resources which are still at a scoping study stage highlight the upside potential of this mine which is the largest Copper mine in the DRC.
RPM’s engagement with CMOC for both projects commenced with RPM providing technical due diligence and technical transaction support at CMOC’s Phoenix headquarters and then transitioned to RPM undertaking the compliance work where its key task was to highlight and present (in line with recommended guidelines of JORC 2012) the underlying technical value of the assets to investors and navigate the Hong Kong Stock Exchange (HKEx) clearance process.
The deliverables provided by RPM for both projects included due diligence reports, independent estimation and reporting of Mineral Resource and Ore reserves to JORC 2012 with accompanying production schedules and compilation of the Competent Persons Reports. RPM’s work culminated last week with the public release of compliance documentation on the Hong Kong and Shanghai security exchanges.
Commenting on the announcement, RPM’s CEO and Managing Director Richard Mathews said “RPM is proud of the integral role performed by its global Advisory team in what is two of the largest mining acquisitions to happen in the past few years globally. The major challenges with work of this nature include the very short timeframes, complexities of the projects and global diversity of the parties involved. RPM’s global Advisory team were uniquely placed to deliver on CMOC’s requirements.”
One of the key differentiating factors setting RPM’s Advisory team apart is the unique combination of expertise and experience with technology. Leveraging RPM’s Planning and Scheduling Open Pit Metals (OPMS) Solution gave a level of speed, accuracy and visibility, adding to the overall service delivery.
Mr Mathews continued, “The involvement of RPM in high profile acquisition work of this nature once again highlights the trust major companies have in RPM to deliver high quality reports in such time critical projects. The team highlighted early on in the process that to meet the required delivery date the scheduling process needed to be reduced from 6 months to 8 weeks!”
“Historically, without an army of staff, this would simply not have been possible. What enabled this to be achieved was the ability for RPM’s Advisory team to utilise RPM’s industry leading Open Pit Metals (OPMS) mine scheduling software solution into its Advisory processes and importantly the expertise and lessons learnt from previous projects to complete the scheduling in a much quicker timeframe than normally happens in the industry.”
“As part of the CPR and JORC Reserves, RPM is required to present an independent production schedule, and in this case because of the Client’s forecasts we had to reschedule both projects from first principles. Without OPMS or an army of staff well beyond our team neither projects could have been completed, incorporating the clients value add requirements.”
“Having access to lessons learned by some of our enterprise software clients in using OPMS we were able to adapt some of their process to meet the timeline whilst still delivering a high quality output. Our approach focused on blending requirements for all plants rather than step by step pit scheduling which allowed multiple scenarios to be undertaken in a short period to test sensitivities (days not weeks). The end result was a schedule which was a proper reflection of what really happened on site all the way through the product value chain.”
Mr Mathews concluded by saying “The CMOC transactions demonstrate that RPM is uniquely placed within the market to meet the objectives of our global mining clients by harnessing RPM’s industry leading software solutions with the extensive experience of our Advisory consulting team.”
RPM’s Advisory team has a global presence and will be exhibiting at this year’s MINExpo. Click here to book a meeting with one of our Advisory experts: http://minexpo.rpmglobal.com/