Selbaie mine may be sold to Gencor

The Selbaie copper-zinc mine near Matagami, Que., may be sold to Gencor.

The South African company has bid on selected metals and minerals operations owned by Billiton Metals Canada. Negotiations are under way between Gencor and the Royal Dutch/Shell group, which owns Billiton. (The company acquired full ownership of Selbaie from BP Canada in late 1992.), Last year, Billiton posted revenue of 1.3 billion.

According to news reports, Gencor plans to create a publicly traded international resource company if the deal goes through.

Gencor is South Africa’s second-largest conglomerate, behind Anglo American Corp.

Beyond its mining operations, primarily in gold and platinum group metals, Gencor has financial and industrial interests. But reports suggest Gencor plans to shed its non-mining businesses to concentrate on metals. Ore at Selbaie is being mined underground from the A-2 and B zones, and from the A-1 zone open pit. The company plans to suspend underground operations at the end of 1993, after which time production of 7,270 tonnes per day will come solely from the open pit. Current open pit reserves are sufficient for at least 10 years of production.