Metorex says Vale will not top Jinchuan bid

South African-listed miner Metorex (MTXJ.J) said on Monday Brazil’s Vale (VALE5.SA) would not submit a new offer to top a bid to acquire Metorex by China’s Jinchuan Group.

Metorex said in a statement that it would pay Vale a 75.2 million rand ($11.2 million) break fee to terminate the agreement. Jinchuan had added around 20 percent to the Vale bid, offering over $1.3 billion for the copper and cobalt producer.

“The board has received written notice from Vale that it does not intend to submit an amended Vale offer,” Metorex said in a statement.

Metorex’s share price was down 2.2 percent in early trade at 8.49 rand. The Jinchuan offer is a cash bid of 8.90 rand per share.

The battle for the group is the latest saga in the scramble for African resources by emerging market giants China and Brazil, which have an insatiable appetite for raw materials to fuel their growth.

Metorex is seen as a prized asset for a number of reasons including exposure to copper and cobalt resources in Zambia and the Democratic Republic of Congo at a time when the outlook for both commodities is bullish.

The acquisition will also see Metorex delisted from the Johannesburg bourse.

This will remove the costs and political risks associated with operating in South Africa, which include compliance with a mining charter aimed at putting more ownership into the hands of previously disadvantaged blacks, union militancy and nationalisation talk by radical elements of the ruling party.