The Zijin Mining Group is China's leading gold, copper and non-ferrous metals producer and refiner. (Photo : Google)
As China's mining and steel industry faces gloomy weather, some state-owned firms declared that they are considering the acquisition of quality mineral material supply sources abroad at lower costs.
Zijin Mining Group, the country's leading gold, copper and non-ferrous metals producer and refiner, is one of the firms that revealed their plan to subsidize acquisition projects abroad.
According to the company's plan, they will issue 2.42 billion shares at a unit price of 4.13 yuan ($0.66) to amass a capital worth 10 billion yuan ($1.6 billion), wherein 2.51 billion yuan ($405 million) and 3.22 billion yuan ($519 million) will be allocated for acquiring the Kamoa and Kolweizi copper mines, respectively, in Congo, and 1.82 billion yuan ($293 million) to buy the Porgera gold mine in Papua New Guinea.
Zijin has teamed up with Canadian companies Ivanhoe Energy and Barrick Gold to work on the development of Kamoa copper mine and the Porgera gold mine on May 26.
With a total of 24.16 million tons of copper reserves, Kamoa is one of the three core mineral assets of Ivanhoe.
The Porgera gold mine, on the other hand, holds 285 tons of gold reserves and is one of the world's largest gold producers, ranking 36th worldwide. Currently, Barrick controls 95 percent of the gold mine.
According to a report by Want China Times, Zijin's mineral ore resources will increase upon the acquisition, as it will support the company's long-term development.
The news site added that the firm's gold mine reserves will have an increased rate of 10.09 percent, from 1,341.50 tons to 1,476.88 tons, while its copper reserves will rise from 15.43 million tons to 26.79 million tons.
