mwanakijiji
12-18-2008, 04:42 PM
ENGELS GO FOR THE COLD!
(Haaretz Daily)
Engelinvest acquired the rights to three copper mines in Tanzania last week. The company controlled by businessman Jacob Engel expects to pour tens of millions of dollars into the investment for geological surveys, equipment, extraction and processing and operation of the mines, as well as for marketing.
It will also be involved in mining gold, nickel, iron and other metals in the east African country.
Engelinvest launched its mining activities about a year and a half ago. In addition to its Tanzania operations the group owns rights to nine chromium mines in Albania, along the border with Kosovo, and three mines, for lead, iron and gold, in Liberia. It is planning to launch gold, tin and cobalt mining activities in the Democratic Republic of Congo.
In addition to its mining and real estate activities Engelinvest is involved in international commerce in scrap metal for the Indian and Chinese metal industries, and owns forges in Eastern Europe.
"Despite the global economic crisis and falling commodity and mineral prices worldwide, we view this as a long-term strategic investment," the CEO of Engelinvest's Infrastructure Division, Izik Amiel, said. "We are taking advantage of conditions that have developed in the markets to complete deals we could not have afforded in times when the markets were stronger." The company is managed by Amir Nagammy.
Engel says the company's business model in mining is similar to that of its real estate business strategy, focusing on partnerships with local landowners rather than outright cash purchases of the property, to reduce the risk to the company. Payments to landowners for mining rights, and for the mines themselves, are borne by local partners in exchange for a percentage of future profits (about 20%-25%).
The company reports that it has invested some $30 million in its mining activities so far, in exchange for natural resources it says are worth billions. It expects its investment to increase to hundreds of millions of dollars over the next few years. And as with its real estate business, it plans to sell shares in its mining activities to the public once the markets become less volatile and more positive. Nevertheless, the company reports that more convenient current market conditions mean that the group is already generating a profit.
In a stroke of impeccable good timing, at the apex of the real estate boom, in 2006, Engel sold his holdings in Langa Holdings (61.8%) to businessman Shaya Boymelgreen for NIS 430 million, reflecting a market value of NIS 696 million. Lange is currently traded at a market cap of a mere NIS 66 million.
(Haaretz Daily)
Engelinvest acquired the rights to three copper mines in Tanzania last week. The company controlled by businessman Jacob Engel expects to pour tens of millions of dollars into the investment for geological surveys, equipment, extraction and processing and operation of the mines, as well as for marketing.
It will also be involved in mining gold, nickel, iron and other metals in the east African country.
Engelinvest launched its mining activities about a year and a half ago. In addition to its Tanzania operations the group owns rights to nine chromium mines in Albania, along the border with Kosovo, and three mines, for lead, iron and gold, in Liberia. It is planning to launch gold, tin and cobalt mining activities in the Democratic Republic of Congo.
In addition to its mining and real estate activities Engelinvest is involved in international commerce in scrap metal for the Indian and Chinese metal industries, and owns forges in Eastern Europe.
"Despite the global economic crisis and falling commodity and mineral prices worldwide, we view this as a long-term strategic investment," the CEO of Engelinvest's Infrastructure Division, Izik Amiel, said. "We are taking advantage of conditions that have developed in the markets to complete deals we could not have afforded in times when the markets were stronger." The company is managed by Amir Nagammy.
Engel says the company's business model in mining is similar to that of its real estate business strategy, focusing on partnerships with local landowners rather than outright cash purchases of the property, to reduce the risk to the company. Payments to landowners for mining rights, and for the mines themselves, are borne by local partners in exchange for a percentage of future profits (about 20%-25%).
The company reports that it has invested some $30 million in its mining activities so far, in exchange for natural resources it says are worth billions. It expects its investment to increase to hundreds of millions of dollars over the next few years. And as with its real estate business, it plans to sell shares in its mining activities to the public once the markets become less volatile and more positive. Nevertheless, the company reports that more convenient current market conditions mean that the group is already generating a profit.
In a stroke of impeccable good timing, at the apex of the real estate boom, in 2006, Engel sold his holdings in Langa Holdings (61.8%) to businessman Shaya Boymelgreen for NIS 430 million, reflecting a market value of NIS 696 million. Lange is currently traded at a market cap of a mere NIS 66 million.