Vedanta buys 9.5% stake in Hudbay Minerals

MUMBAI: Vedanta Resources has bought a 9.5% equity stake in Canada���s Hudbay Minerals for an undisclosed amount. The equity stake was bought by Vedanta���s unlisted unit Lakomasko BV, which is based in Amsterdam, Vedanta said on Tuesday.

"They do control that stake. It (Lakomasko) is an organisation that is controlled by Vedanta Resources," Vedanta spokesman Robin Walker said declining to comment further.

HudBay Minerals is an integrated mining company with assets in north and central America and principally focused on discovery, production and marketing of base metals. The Canadian $900 million company recently had its board of directors replaced by a new board constituting of nominees of SRM Global Master Fund Limited Partnership.

According to a senior executive in Vedanta, the move to buy into Hudbay is "just a portfolio investment. We bought the stake a quarter ago and this is part of our move to have a presence in a resources firm. It (Hudbay) is primarily a zinc smelter and copper is one of the byproducts," said the executive who declined to be named.

Shares of Hindustan Zinc, a Vedanta unit, were down 4.5% at Rs 469.45 in a weak intraday market on the BSE.
The London-listed Vedanta is currently trying to build its presence globally in mineral firms.

It is currently the frontrunner in the race to acquire US-based copper firm Asarco and has already bid $1.7 billion in a cash-cum-deferred-payment deal.