Deutsche Morgan Grenfell is beefing up its metals and mining finance operation in North America.
The company, a unit of Deutsche Bank, has hired Tye W. Burt as managing director and global head of metals and mining in Toronto. Mr. Burt is also overseeing the company's investment banking division there.
Mr. Burt, 40, joined the German giant from Nesbitt Burns Inc., Toronto, a division of Bank of Montreal, where he was managing director and global head of mining.
Also joining DMG from Nesbitt Burns was Paul Rollinson, an investment banker and mining engineer. He was named a director.
Both executives started work this week, reporting to Carter McClelland, global co-head of investment banking, and Douglas Byers, president and CEO of DMG Canada.
"This group will allow us to bring global resources to bear in a market where many development, exploration, and production companies have significant global interests," said Mr. Byers. "Tye's hiring will enable us to crystallize our North American efforts in research underwriting and distribution of companies for this sector."
Mr. Burt specialized in M&A and finance during his 11 years at Nesbitt Burns. He advised Diamond Fields Resources in its $3.1 billion acquisition by Inco and advised Arequipa Resources in its $800 million acquisition by Barrick Gold.
Coordinating metals and mining groups worldwide into "one powerful unit, sharing information" will be first on his agenda, said Mr. Burt.
He will help supply mining companies with capital-equity, bonds, and convertible instruments-to fund exploration. Eventually DMG hopes to expand its offerings to include public debt, loans, and private placements.
"Integrating the bank and investment bank is one of the most exciting opportunities here," Mr. Burt said. "Deutsche's project finance capabilities are very strong, and those strengths play into the mining sector that is currently developing."
But Mr. Burt may be facing an uphill battle. Toronto, known as the mining finance capital of the world, is already saturated with Canadian banks that have dug out much of the industry's business, and many of them are expanding into Latin America.
"All of the Canadian banks have had a focus in Canada for many years," said Ken Richards, managing director at CIBC Wood Gundy Securities. "Deutsche Bank has always been a mining bank and a good competitor, and strong in Europe." He added, however, "they haven't been particularly strong in North America."
Goldman, Sachs & Co. grabbed the biggest mining market share last year, raising $1.4 billion in debt and equity worldwide. Nesbitt Burns Securities followed, with $802.6 million; Chase Manhattan Corp., $463 million; and Societe Generale, $404 million, according to Securities Data Co.