Minerals and Metals Group

MMG Limited

Type	Public
Industry	Mining
Founded	17 June 2009
Headquarters	Melbourne, Australia
Key people	Lixin Wang, Chairman Andrew Michelmore, CEO David Lamont, CFO Marcelo Bastos, COO Mike Nossal, EGM Business Development Steve Ryan, EGM Exploration Tim Scully, EGM Business Support Xu Jiqing, EGM Strategic Planning
Products	Zinc Copper Lead Gold Silver
Revenue	US$2,499.4 million (2012)
Net income	US$217.5 million (2012)
Website	www.mmg.com

MMG Limited (MMG; SEHK: 1208; ASX: MMG), formerly known as Minerals and Metals Group, is an Australian-Chinese mid-tier global resources company that explores, develops and mines base metal deposits around the world. It is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange.

History

Minerals and Metals Group was formed in June 2009, following the purchase of the majority of assets of OZ Minerals Limited (OZ Minerals) by China Minmetals Corporation (CMC) through its subsidiary China Minmetals Nonferrous Metals Co. Ltd (CMN). Minerals and Metals Group became commonly referred to as MMG.

The portfolio of assets was sold for US$1.354 billion.^[1] The deal initially also included the Prominent Hill Mine; however, the sale was blocked by the Australian Government, citing national security concerns. Wayne Swan, Treasurer of Australia, stated that Prominent Hill could not be included in the sale as it was within a sensitive military area. The sale went ahead only after Prominent Hill was excluded from the deal; OZ Minerals retained Prominent Hill as its only major asset.^[2]

In December 2010 MMG was acquired by Minmetals Resources Limited, a subsidiary of China Minmetals Corporation and listed on the Stock Exchange of Hong Kong Limited (Stock Code: 1208).^[3]

In September 2012 Minmetals Resources Limited changed its registered English company name to MMG Limited to align the assets already operating as ‘MMG’ with the registered company name.

Operations

MMG owns and operates the Lane Xang Minerals Limited (LXML) Sepon mine in Laos, the Kinsevere mine in the Democratic Republic of Congo, and the Century, Golden Grove, and Rosebery mines in Australia. It also owns the Avebury nickel mine in Australia, which is under care and maintenance. Its development projects include Dugald River, a high-grade zinc-lead-silver deposit in north-west Queensland, Australia, and the Izok Corridor base metals project in Nunavut, north-west Canada. MMG also has significant exploration projects and partnerships in Australia, Africa, and the Americas. It is one of the world's largest producers of zinc and also produces significant amounts of copper, lead, gold and silver.

During 2014, MMG completed the purchase of the Las Bambas copper mine project, a copper-gold-molybdenum deposit slated for first production in early 2016. Las Bambas is located in the Apurimac Region of Peru.^[4]

Zinc production

According to an article in the Financial Post,^[5] MMG’s Century Mine will be coming offline in the next few years along with a number of other major zinc mines. Sally Cox, a spokeswoman for proponent MMG Minerals, a subsidiary of the Chinese state-owned Minmetals Resources Ltd., explained that MMG is planning on replacing the zinc production of 500,000 tonnes with their massive Izok Corridor project and their mine in Australia. The planned corridor would include five separate mines at Izok Lake, three mines at High Lake, a processing plant, a port "that could accommodate ships of up to 50,000 tonnes that would make 16 round trips a year — both east and west — through the Northwest Passage" and a "350-kilometre all-weather road with 70 bridges that would stretch from Izok Lake to Grays Bay on the central Arctic coast."^[5]

Corporate social responsibility

In 2012, MMG invested approximately $US18.5 million in host communities in a range of targeted social investment projects. These included education and training, community development, compensation, local business development, sponsorships, donations and capacity-building. In 2011, MMG and UNICEF partnered to deliver the The 1000 Day project, which raises funds and awareness and provides on-the-ground programs to target zinc and other micronutrient deficiencies in children worldwide.^[6]

MMG has proactive programs in place to provide employment and business opportunities to local stakeholders, including Indigenous Australians.^[3]

References