Inmet Mining

Inmet Mining Corporation was a Canadian mining company headquartered in Toronto. Established in 1987, it developed a portfolio of base-metal and precious-metal assets across several countries, with copper becoming increasingly central to its business. The company operated or held interests in mines and mining projects in Turkey, Spain, Finland, Panama and Papua New Guinea, as well as Canada. Its operating portfolio included the Çayeli copper-zinc mine in Turkey, the Las Cruces copper mine in Spain and the Pyhäsalmi mine in Finland. Inmet also held an 18% interest in Ok Tedi Mining Limited in Papua New Guinea. In Canada, it was associated with the Troilus mine and mill in Quebec. Troilus commissioning began in 1996, production started in 1997, and the operation was eventually shut in 2010. Inmet also developed the Cobre Panama project in Panama, which became one of the company’s most strategically important assets before the company ceased to exist as an independent business. The company expanded through acquisitions and operating agreements. In 2003, it acquired its Turkish mine from Teck Resources. In 2008, it assumed management of the Petaquilla mine project in Panama, an arrangement that preceded its larger Cobre Panama development ambitions. Inmet also participated in several proposed corporate combinations. A planned merger with Aur Resources was agreed in April 2004 but abandoned in June of that year. A proposed combination with Lundin Mining reached an agreement in January 2011, but the transaction was withdrawn in March 2011 after it failed to obtain sufficient shareholder support. Inmet’s final major corporate episode was a hostile takeover by First Quantum Minerals. First Quantum successfully acquired the company in March 2013 in a transaction valued at approximately C$5.1 billion. The acquisition brought Inmet’s assets, including its interest in Cobre Panama, into First Quantum’s portfolio and ended Inmet Mining’s independent corporate existence. As a result, Inmet is best understood today as a defunct mining-company brand and former corporate owner or operator of a multinational base-metals asset portfolio rather than as an active standalone producer.

Inmet Mining Corporation was founded in 1987 in Canada and developed into a multinational mining company with a portfolio of copper, zinc and gold assets. Its activities combined direct mine operation, project development and minority ownership interests. The company was headquartered in Toronto and operated across a number of mining jurisdictions, including Turkey, Spain, Finland, Panama and Papua New Guinea. One of the earlier Canadian assets associated with Inmet was the Troilus operation. Inmet commissioned the Troilus mill in 1996, and production began in 1997. Homestake Mining Company agreed in 1997 to acquire a majority interest in the mine, but subsequently withdrew from the proposed deal. The mine continued as part of Inmet’s portfolio until it was shut in 2010. Inmet expanded its international operating base in 2003 when it acquired a mine in Turkey from Teck Resources. This asset became the Çayeli copper-zinc mine, one of the company’s principal operating properties. The company also operated the Las Cruces copper mine in Spain and the Pyhäsalmi mine in Finland. In addition, Inmet held an 18% stake in Ok Tedi Mining Limited in Papua New Guinea, giving it exposure to a major copper and gold mining operation without owning the entire project. The company pursued corporate combinations as part of its growth strategy. In April 2004, it agreed to merge with Aur Resources, but the proposed merger was terminated in June 2004. In May 2008, Inmet took over management of the Petaquilla mine in Panama. Its growing involvement in Panama was linked to the development of the Cobre Panama project, which became an important long-term copper development asset for the company. In January 2011, Inmet agreed to combine with Lundin Mining. The proposed transaction did not receive enough shareholder support, and the agreement was abandoned in March 2011. The failed combination left Inmet independent but exposed it to renewed consolidation pressure within the mining industry. That pressure culminated in a takeover contest with First Quantum Minerals. In March 2013, First Quantum successfully acquired Inmet through a hostile takeover bid valued at approximately C$5.1 billion. The acquisition transferred Inmet’s mining assets and development projects to First Quantum and brought the Cobre Panama project into First Quantum’s portfolio. Following the acquisition, Inmet Mining ceased to operate as an independent company. Its historical significance lies in the international mining portfolio it assembled and in its role as the former owner, operator or investor in several major base-metal assets.

• 2013

  First Quantum Minerals acquires Inmet

  [1]Inmet Miningen.wikipedia.org

  First Quantum Minerals completes a successful hostile takeover of Inmet Mining for approximately C$5.1 billion.

• 2011

  Lundin Mining combination is abandoned

  [1]Inmet Miningen.wikipedia.org

  A proposed combination agreed in January with Lundin Mining is called off in March after failing to obtain shareholder support.

• 2010

  Troilus mine is shut in

  [1]Inmet Miningen.wikipedia.org

  The Troilus mine is shut after its period of production.

• 2008

  Management of Petaquilla is assumed

  [1]Inmet Miningen.wikipedia.org

  Inmet takes over management of the Petaquilla mine project in Panama.

• 2004

  Aur Resources merger is abandoned

  [1]Inmet Miningen.wikipedia.org

  Inmet agrees to merge with Aur Resources in April, but the proposed transaction is called off in June.

• 2003

  Turkish mine acquired from Teck Resources

  [1]Inmet Miningen.wikipedia.org

  Inmet acquires a mine in Turkey from Teck Resources, strengthening its copper-zinc portfolio.

• 1997

  Troilus begins production

  [1]Inmet Miningen.wikipedia.org

  The Troilus operation begins production. Homestake Mining Company also agrees to acquire a majority interest but later withdraws from the transaction.

• 1996

  Troilus mill is commissioned

  [1]Inmet Miningen.wikipedia.org

  Inmet commissions the mill at the Troilus operation in Canada.

• 1987

  Inmet Mining is founded

  [1]Inmet Miningen.wikipedia.org

  Inmet Mining Corporation is established in Canada.

A Canadian multinational mining company centered on copper and other base-metal assets, with a portfolio spanning operating mines, development projects and minority investments.

• Copper mining development project

  Cobre Panama

  Cobre Panama was Inmet’s major copper development project in Panama. The project represented the company’s principal long-term growth initiative and increased the strategic importance of its Panamanian operations. Inmet was developing the project when First Quantum Minerals acquired the company in 2013.

• Copper-zinc mine · 2003

  Çayeli mine

  The Çayeli operation in Turkey was a copper-zinc mine acquired by Inmet from Teck Resources in 2003. It formed part of Inmet’s international operating portfolio and supplied the company with exposure to both copper and zinc production.

• Copper mine

  Las Cruces mine

  Las Cruces was a copper mine in Spain operated within Inmet’s multinational mining portfolio. It represented the company’s direct presence in Spanish copper production alongside its operations in Turkey and Finland.

• Base-metal mine

  Pyhäsalmi mine

  Pyhäsalmi was a Finnish mine held in Inmet’s operating portfolio. The asset contributed to the company’s European mining footprint and complemented its copper and zinc interests elsewhere.

• Gold mining operation · 1997

  Troilus mine and mill

  The Troilus operation was a Canadian mine for which Inmet commissioned a mill in 1996. Production began in 1997. A proposed majority-interest transaction with Homestake Mining Company did not proceed, and the mine was shut in 2010.

• Minority mining investment

  Ok Tedi Mining Limited interest

  Inmet held an 18% stake in Ok Tedi Mining Limited in Papua New Guinea. This minority investment gave the company participation in a major international copper and gold mining business without full operational ownership.

• 2013

  Accept First Quantum Minerals’ hostile takeoverM&A

  Background

  First Quantum Minerals pursued Inmet in a hostile takeover after Inmet had remained independent following the failed Lundin Mining combination.

  Action taken

  First Quantum Minerals acquired Inmet Mining in March 2013 for approximately C$5.1 billion.

  Aftermath

  Inmet ceased to exist as an independent company, while its mines, minority interests and development projects became part of First Quantum Minerals’ portfolio.

  Acquisition value. C$5.1 billion (2013)

  Source

• 2011

  Abandon the proposed Lundin Mining combinationM&A

  Background

  Inmet and Lundin Mining agreed in January 2011 to combine their businesses.

  Action taken

  The parties called off the proposed combination in March 2011 after it failed to win sufficient shareholder support.

  Aftermath

  Inmet remained independent until First Quantum Minerals launched and completed its successful hostile takeover in 2013.

  Source

• 2004

  Terminate the proposed Aur Resources mergerM&A

  Background

  Inmet and Aur Resources had agreed to combine in April 2004 as part of a mining-sector consolidation effort.

  Action taken

  The companies called off the proposed transaction in June 2004.

  Aftermath

  Inmet continued as an independent company and later pursued other operating and corporate-growth opportunities.

  Source

1. 1Inmet Miningen.wikipedia.org