FACTBOX-Recent major base metals mergers

Dec 12, 2006 - Australia's Zinifex Ltd. ZFX.AX and Belgian
metals firm Umicore ACUMt.BR said they would combine their
zinc smelters to create the world's largest zinc metal producer.

The two will offer shares in the newly formed group, worth
up to $1.6 billion, on the Euronext exchange some time after it
is formed in third quarter of 2007.

The deal won European Union permission in February. Binding
agreement signed April 23. New company to be called Nyrstar.

Nov 20, 2006 - Freeport McMoran Copper & Gold Inc. (FCX.N)
said it had agreed to buy Phelps Dodge Corp. to create the
world's largest publicly traded copper company and rank second
only to world No 1. Chile's state-owned Codelco.

The combined company would produce a net 3.1 billion lb (1.4
million tonnes) of copper and 1.7 million ounces of gold this
year. Combined reserves would total 75 billion lb of copper and
41 million ounces of gold.

Freeport said it agreed to buy much larger Phelps Dodge
PD.N for $25.9 billion in cash and stock. [ID:nN19484149]
Acquisition completed on March 19.

Nov 6, 2006 - Brazil's Companhia Vale do Rio Doce
(VALE5.SA)RIO.N said it had obtained 86.57 pct of Inco Ltd.'s
shares when its offer expired on Nov 3. Initial bid for the
company made Aug 11.

CVRD produces aluminium, copper and was set to emerge as a
nickel producer in 2008. Inco is the world's second largest
nickel firm and also produces copper, cobalt, precious and
platinum-group metals.

Earlier, Inco sought to merge with fellow Canadian miner
Falconbridge (now Xstrata) and was also involved in a possible
three-way tie-up with Phelps Dodge. Teck Cominco TEKb.TO
launched a bid for Inco in May, but abandoned its offer a few
months later.

Nov 2, 2006 - Xstrata said it had completed the acquisition
of Canadian miner Falconbridge, owning 100 percent of the
shares. Xstrata took control of Falconbridge in August, making
it the world's fifth largest diversified mining firm by market
capitalisation. Xstrata products include copper, aluminium,
zinc, nickel, alloys and coal.

Oct 6, 2006 - RUSAL, SUAL and Glencore sign a merger deal
to create the world's largest aluminium company. United Company
RUSAL would be able to produce 4 million t/yr of aluminium and
11 million t/yr of alumina and planned to raise aluminium output
to between 5 million and 5.5 million tonnes in the next three to
three-and-a-half years.

The table below details the top producers of aluminium and
alumina:

Aluminium output

(million tonnes)

2007

UC RUSAL 4.260

Alcoa 3.873

Rio/Alcan 4.179

Chalco 2.425

Hydro 1.705

BHP Billiton 1.411

Alumina

(million tonnes)

2007

AWAC** 14.193

UC RUSAL 10.447

Chalco 10.038

Alcan 6.652

BHP Billiton 4.475

CVRD 2.480

Hydro 2.057

Other

Alcoa 0.852 0.866

**Alcoa owns 60 percent in AWAC.

Sources: CRU Analysis, Brook Hunt, Reuters Metal Production
Database.

(Compiled by Karen Norton; edited by Michael Roddy)