Decision Nº M/03/024 from Competition and Consumer Protection Commission, 2003-08-22

• Jurisdiction: Ireland
• Parties: Ivernia West,Lisheen
• Submitted Date: 28 July 2003
• Date: 22 August 2003
• Decision Number: M/03/024
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 22 August 2003

Determination of the Competition Authority

Determination No. M/03/024 of the Competition Authority, dated 22 August

2003, under Section 21 of the Competition Act, 2002

Notification No. M/03/024 – The acquisition by Anglo American Lisheen

Holdings Limited of the entire issued share capital of Ivernia West Limited

Introduction

1. On 28 July 2003 the Competition Authority, in accordance with Section 18(1) of

the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby Anglo American Lisheen Holdings Limited would acquire the

entire issued share capital of Ivernia West Limited.

The Parties

2. Anglo American Lisheen Holdings Limited ("AALH") is an indirectly wholly

owned subsidiary of Anglo American plc. The Anglo American Group (“Anglo

American”) is one of the world’s largest mining and natural resource groups, with

operations in Africa, Europe, Russia, South and North America and Australia.

With its subsidiaries, joint ventures and associates, it is a world leader in gold,

platinum group metals and diamonds; it has significant interests in coal, industrial

minerals, forest products, base and ferrous metals including zinc and lead.

3. Ivernia West Limited ("IWL") is a wholly owned subsidiary of Ivernia West Inc.

Ivernia West Inc. is an international base metals mining and exploration

company, with primary interest in lead and zinc, headquartered in Toronto,

Canada.

4. AALH and IWL are the vehicle companies for a 50/50 joint venture between

Anglo American plc and Ivernia West Inc - the Lisheen mine in County

Tipperary. The acquisition represents a move from joint to sole control of the

Lisheen mine, by Anglo American.

Analysis

5. The Lisheen mine produces zinc concentrate and lead concentrate, which are

intermediate products in the production of refined zinc and lead metal. Lead and

zinc ores frequently occur together and therefore a key part of the

mining/production process is often to separate the two. There are no

refining/smelting plants on the island of Ireland and so all zinc concentrate and

lead concentrate produced in Ireland is exported. Anglo American is also active

at the refining/smelting stage of the production of refined zinc metal.

6. Market enquiries have confirmed that the markets for zinc concentrate and lead

concentrate are global. Refiners purchase zinc/lead concentrate from all corners

of the world and prices are the same worldwide.

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