THURSDAY, 8.30AM
The giant South African mining house Gencor will transform itself into an internationally diversified mining group, splitting into two separate companies, one based in London, it was announced yesterday.
The gold and platinum mining interests will remain with Gencor itself, which will remain listed on the JSE. All other interests, including mining of other minerals, will be transferred to subsidiary Billiton, which will move its headquarters to London and list on the London exchange. Billiton will include such major companies as steel industries Samancor and Alusaf; and mining groups Richards Bay Minerals and Ingwe Coal.
Billiton will raise $1 billion or more on the London Stock Exchange through an issue of shares to foreign investors, in what is expected to be London’s biggest capital-raising deal this year, and which will position Billiton as the world’s third largest mining house. The London base will allow Billiton to raise more money than is possible in South Africa, which will be used to fund such projects as a mineral sand project and an aluminium smelter in Mozambique and a zinc refinery in the Eastern Cape.