Metal Products News
- Jiangxi Copper may expand into lead, zinc
Date: 6-Dec-2007 Sources: (Shenzhen Daily)
THE provincial government of Jiangxi Province plans to consolidate local lead and zinc mines and is considering to allow Jiangxi Copper Corp. to take over those mining assets, a senior executive said yesterday.
Jiangxi Copper is the biggest integrated copper producer in China through its Hong Kong and Shanghai-listed arm and owned by the Jiangxi Provincial Government.
'That is an idea of the provincial government. Jiangxi Copper has not made it a policy,'the executive of Jiangxi Copper said.
If Jiangxi Copper took over local lead and zinc mines, those assets would not be managed by its listed arm, he said.
The executive said the Jiangxi Provincial Government's plan did not include lead and zinc smelters in the province. He didn't say whether Jiangxi Copper would build a smelter to process its lead and zinc ores.
Industry sources in Jiangxi Province, however, said Jiangxi Copper was considering to build a 200,000-tons-a-year lead and zinc smelter to process ores from local mines.
Developing zinc assets could diversify Jiangxi Copper's business and increase revenues.
China's tightening controls over mining of lead and zinc are likely to spur mergers and acquisitions in the industry in coming three years.
Wang Gongmin, vice president of China Nonferrous Metals Industry, said last week that investors and large metal companies making copper, aluminum and steel might acquire lead and zinc companies.
Jiangxi Copper would produce about 550,000 tons of refined copper this year and output would rise next year due to expanded capacity, a senior executive of its listed arm said last month.
The firm has capacity to produce 700,000 tons of refined copper a year and 370,000 tons of semi-finished copper products in Jiangxi Province.
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