It is reported that everything kept going right at copper cobalt producer Metorex in the six months to end June and the group is now pushing ahead with its next project in the Democratic Republic of Congo.

But the benefits from Kinsenda will accrue to new owner Jinchuan Group after 98.6% of Metorex shareholders voted to accept the Chinese conglomerate's offer of 890 cents a share to take over the company.

Mr Rob Still chairman of Metorex said that Metorex will be de listed from the JSE during December by when the processes and regulatory permissions required to advance the Jinchuan offer to shareholders are expected to be completed.

What is not yet clear is the fate of Metorex's top management which Jinchuan vice president Mr Sanlin Zhang told Miningmx on August 16th 2011 that he was keen to retain.

Mr Zhang highlighted the proven abilities of the Metorex management team and stressed that Metorex would be a very good platform on which management could develop professionally. He added that, after the transaction, Metorex would continue to be run as a stand alone operation with its own board of directors and management.

But Mr Zhang declined to specify whether current Metorex CEO Mr Terence Goodlace would be kept in charge of the group.

Mr Goodlace told Miningmx that "This is something that the management of Metorex has been very careful about. We decided we would not negotiate for ourselves until the shareholders had decided on whether to accept the offer. Now that they have accepted the offer we will get into negotiations with Jinchuan on the details of our future."

Mr Goodlace declined to comment when asked if he wanted to stay in charge of Metorex once Jinchuan had taken over.

In the six months to end June, Metorex increased copper production by 5% to 26,562 tonnes and cobalt production by 18% to 1,890 tonnes. The group's mining profit more than doubled to USD 131 million and net debt was reduced 53% to USD 29 million.

Mr Goodlace said that "The re modeling exercise increased the estimated inflows from 45,000 cubic metres per day to 70,000 cubic metres per day and, as a result of this increase, additional studies have been recommended to review the mine design and increase the capacity of water pumping facilities to de-risk the threat of flooding of the mine."

Total estimated capital cost of the Kinsenda project is now USD 273 million.

(Sourced from miningmx.com)