Mvela set to draw bidders for its platinum holdings

MVELAPHANDA Resources expects to draw bidders attracted by its huge platinum project, but declined to comment on a report that Kazakh group ENRC have made a takeover approach.

MVELAPHANDA Resources expects to draw bidders attracted by its huge platinum project, but declined to comment on a report that Kazakh group ENRC have made a takeover approach.

London-listed ENRC also declined yesterday to comment on a report on website Miningmx, which cited no sources, that said ENRC was holding talks with Mvela about a possible bid. An analyst said the report was credible.

Mvelaphanda - a holding company which plans to delist and spin off stakes to shareholders - has a market value of $1,43billion (R10,4bn).

Mvela's executive commercial manager James Wellsted declined to comment on the report about ENRC, but said interest was likely from potential bidders.

"There's clearly going to be some interest, whether it's from ENRC or another platinum producer, I'm sure people are looking at us," he told Reuters.

Mvelaphanda is a mining investment vehicle that owns stakes in several firms, including a 62,8percent holding in South Africa's Northam Platinum, which owns the Booysendal project.

"There's been quite a significant change in the outlook for the PGM (platinum group metal) market - the prices are a lot higher - and obviously Northam and Booysendal offer a very attractive suite of assets." - Reuters

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