It has been reported that the European Commission (EC) has provisionally approved the friendly takeover of miner Falconbridge by fellow-Canadian firm Inco.

Sources suggest that the executive commission has approved the takeover in its draft decision.

It is now sending its draft decision to competition authorities in its 25 member states for their approval. Member state authorities will then meet to discuss the draft and make their recommendations.

Draft approval of the deal means that the takeover appears on course to meet its July 12th deadline.

"The commission will decide whether or not to give its go-ahead to the Inco Falconbridge deal by the deadline of July 12th at the latest," the commission's competition spokesman Jonathan Todd told Reuters.

Based on current growth projects and expansion plans, and as a result of the synergies accounted for to date, Inco and Falconbridge expect by 2009 to increase production of platinum group metals by approximately 111,000 oz in their combined Canadian operations.

Ÿ Adfero Ltd