Through its takeover of Anvil Mining, Minmetal Resources of China said on Friday that it would use its recently acquired assets to acquire mines in southern Africa.

When it took over Anvil at the cost of $1.25 billion, Minmetal picked up the Kinsevere copper mine in Congo. Minmetal Chief Executive Andrew Michelmore said the firm is looking at other copper opportunities in Zambia, Namibia, Botswana, Tanzania and Malawi.

Mr Michelmore said the market for acquisition had cooled since 2011 with the retreat in copper prices between July and October 2011 which dragged asset valuations back to more realistic levels.

"We don't make as much profit (at lower copper prices) but the price is more sustainable and people's expectations on the values of their businesses are starting to come back to realistic numbers," The Australian quoted Mr Michelmore.

Although the sales process at Minmetal's Avebury nickel project in Tasmania have generated some interest, the miner failed to reach acceptable terms and slowed down the sale process.

Mr Michelmore added the firm is about to make a decision to develop the Dugaid River zinc-lead-silver project in Queensland, expected to cost between $1 billion and $1.25 billion to build. The mine is expected to be approved by mid 2012 with its first production due 12 months after.

He said Dugald River is one of the world's largest, highest grade underdeveloped lead and zinc ore bodies.

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