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.''

Johannes Sittard, ENRC's chief executive, said last month that the group was looking to expand outside steel making materials and the company was looking for acquisitions.

A statement issued by ENRC confirmed the discussions but did not make any commitment.

''ENRC confirms that it is currently in advanced discussions with Camec regarding a potential offer for Camec. However, whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed,'' the company said.

Analysts expect resource keen Chinese groups may also show interest in Camec, a major producer of Cobalt in the Democratic Republic of Congo (DRC).

China Investment Corporation, a sovereign wealth fund, and the Brazilian mining giant Vale are both thought to be interested in Camec's assets and were mentioned as potential suitors in July, when Camec first confirmed the approach.

DRC is the world's largest producer of the metal, which is used in batteries, magnetic alloys and in pigments.

In July, Camec signed a long-term agreement to sell its annual cobalt production from its majority-owned Mukondo Mountain mine to China's Galico Cobalt & Nickel Materials Co.

Camec, whose share price closed down 3.85 per cent yesterday, at 18.75p, operates in a number of African countries. ENRC's shares finished up 6.45 per cent at 916.5p yesterday.

If ENRC's bid was successful, it would give it access to cobalt and coal operations in the DRC, a stake in the Bokia platinum project in Zimbabwe, a bauxite operation in Mali, and a stake in a flourspar operation in South Africa.

ENRC has a market capitalisation of £11 billion compared to CAMEC's £540 million valuation.