First Quantum Minerals Ltd has launched a hostile bid for Inmet Mining Corp valued at $5.1-billion after the company was not able to get the Inmet to agree to a negotiation process over the possible takeover.

First Quantum, which is listed in Toronto and London-listed company, has said that it will offer $72 a share for Inmet. The payment would be made half in cash and other half in stock. First Quantum expressed hopes that the hostile bid would help convince Inmet to begin negotiations.

First Quantum is aimed at Inmet's Cobre Panama project, which is believed to be one of world's richest undeveloped copper assets. Inmet believes that an investment of US$6.2-billion would be required to build the project. However, First Quantum has said that it believes that the project can be developed for much lesser amount.

President Clive Newall said, "Every dollar we can save on that project is in the interests of all shareholders. We have an advantage right out the gate in that we can build it cheaper."

He also said that First Quantum has an advantage that it develops an entire project with its in-house talent rather than outside engineering firms and thus it is able to deliver project son time and within budgets.