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IRH eyes stake in Alphamin: State-owned International Holding Company subsidiary International Resources Holding (IRH) is in talks to acquire an indirect stake in Alphamin Resources, one of the world’s largest tin producers, Bloomberg reports, citing sources familiar with the matter. IRH is considering investing in a new vehicle that Denham Capital, Alphamin’s majority stakeholder, may create to hold the stake.
Still early: An IRH delegation recently visited Alphamin’s Bisie mining site in Congo as part of the talks, though no agreement has been finalized, and the discussions may not lead to an investment, the sources said.
In context: Denham — which owns 57% of Alphamin and has been its largest shareholder for over a decade — is exploring a “vehicle to continue the investment in Bisie,” according to Denham partner Rob Still. The project has faced stalled investments due to three decades of conflict in the region. Gerald Metals is the sole offtaker for Bisie’s tin concentrate under a prepayment-linked contract lasting until 2028.
What IRH would gain: Investors in the new Denham vehicle would benefit from the profitability of the world’s two highest-grade tin mines. Alphamin, valued at USD 1 bn, paid USD 115.5 mn in dividends for 2022 and 2023. The company plans to expand its annual output to 20k tons, representing 6-7% of global tin production.
REMEMBER- IRH is doubling down on securing critical minerals, with plans to invest USD 1 bn in mining acquisitions in 2024. It acquired a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn in April and inked joint venture agreements for iron mining in Angola, with advanced discussions held to mine nickel in Burundi, along with metals in Tanzania and Kenya. It is also eyeing a majority stake in Zambia’s Lubambe Copper Mine.
