The Kazakhstan-based mining group Eurasian Natural Resources (ENRC) said it was in advanced talks with Central African Mining & Exploration Company (Camec) to acquire the group.
ENRC is a natural resources company with operations in exploration, mining, processing, power generation, logistics and marketing. The company has a strong focus on iron ore, bauxite, ferroalloys and manganese.
Camec's biggest shareholder is Israeli-based resources investor Dan Gertler, who has a holding of about 35 per cent.
According to reports, ENRC's offer would be in cash and priced at 20 pence a share, valuing Camec at about £600 million.
Gordon Thompson, Camec's chief operating officer, said the board would discuss the potential offer at a meeting next Monday.
''ENRC is a large diversified operator, it runs very, very successful operations in Kazakhstan and in Africa,'' he said adding that ENRC would be a ''good match.''