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21 December 2012 | Adam Leach

Mining group First Quantum Minerals (FQM) has announced it intention to acquire rival Inmet Mining for CAD$5.1 billion (£3.17 billion) to become one of the world’s largest copper processors.

In a statement, published this week, FQM explained it was seeking to take over Inmet to increase its power in the copper and base metals market. It said the acquisition had the potential “to create the world’s premier” base metals company. It said it would pay CAD$72 per share (£44.78 billion) plus options in FQM, valuing the company at a total of CAD$5.1 billion (£3.17 billion).

Philip Pascall, CEO and chairman of First Quantum Minerals, said: “We believe in the prospects of a combination for our two companies, which are uniquely complementary. The enlarged group will draw on the best physical and human resources of both First Quantum and Inmet to create a premier, widely held base metals company with leading growth in copper production and cash flow generation.”

Inmet responded to the statement by saying it had received no official offer for the company from anyone and that it advised shareholders to “take no action at this time”. It said it would provide no further comment until it received an offer.

FQM has mining operations in Zambia, the Democratic Republic of Congo, Mauritania and Finland, producing metals such as copper, gold and nickel. Inmet mines copper and zinc in Spain, Finland and Turkey.

Earlier this year, Chilean mining group Antofagasta reported a 7.2 per cent fall in half-year profits, as the price of copper fell by 13.8 per cent in 2012 compared to the same period in 2011.