Business magnate Benny Steinmetz has set his sights on raising $1 billion for his mining company, BSGR. At the initial stage, however, Steinmetz will raise $200 million in a private placement among institutional investors in the Israeli capital market and weigh the possibility of going public at a later date.

The capital raised in the placement will finance Steinmetz's mining activities and acquisition of additional mining sites. The placement is being managed by the IBI investment firm. Presentations to institutional investors have already begun, after the company received an A+ rating from the Maalot securities rating company.

BSGR is active in the fields of mining and engineering. Its subsidiaries include Bateman Engineering N.V., Bateman Litwin N.V. and Nikanor PLC, which have been floated over the past two years on the AIM securities exchange in London, and Cunico Resources, which is about to float 25 percent of its shares on the London Securities Exchange at a pre-float valuation of NIS 2-3 billion. The post-offering value of Steinmetz's issued companies will then total $7.5 billion, and the value of the mining company's holdings nearly $3 billion.

Steinmetz's activities in mining and ores are concentrated in Africa and Eastern Europe. He owns lead, iron and aluminum mines in Guinea and copper mines in Zambia. He mines diamonds in Sierra Leone and the Democratic Republic of Congo. Copper and cobalt are extracted in the Democratic Republic and Zambia. His group is also operates in the energy sector, through his company, BSG Energy. The company is active in the oil and gas sector in Russia, Romania and Nigeria. BSG controls Bateman Litwin. BSGR, one of the Benny Steinmetz Group (BSG) companies, is active in the field of diamonds and financial markets.