Zhaojin Mining to acquire majority equity interest in Baicheng Xian Dishui

2 January 2012 (Last Updated January 2nd, 2012 18:30)

Zhaojin Mining Company has unveiled plans to acquire the majority equity stake in Baicheng Xian Dishui Copper Mine Development Company.

Zhaojin Mining Company has unveiled plans to acquire the majority equity stake in Baicheng Xian Dishui Copper Mine Development Company.

The company will secure 79% equity interest of Baicheng Xian for a total value of 600m yuan ($95.33m).

Once the acquisition is complete, Dishui Gold-Copper Mine will become a non-wholly owned subsidiary of the company.

Zhaojin Mining chairman Lu Dongshang said that the group will strengthen its gold resources mining capability by enhancing its exploration and exploitation efforts, and potential acquisitions.

"We believe the acquisition can expand our resources and enhance our core competitiveness and profitability," added Dongshang.

Dishui Gold-Copper Mine is located in the Xinjiang Uyghur Autonomous Region in China and is primarily engaged in copper ores mining and processing, and sale of copper ores and by-products.

Dishui also offers relevant technical consultation services on the mining and processing of copper mines.

The gold-copper mine, which is equipped with medium-size reserves, is being adequately prospected and site investigation has confirmed that it has reliable resources for exploration.

The mine is equipped with comprehensive production and living facilities, which guarantee operations immediately upon the acquisition.

The acquisition of such a gold-copper mine will help to address the raw material supply of copper concentrates for the Zhaojin Mining's subsidiary Xinjiang Xinhui Copper Company.

Zhaojin Mining Company is engaged in the exploration, mining, ore processing, smelting and sale of gold products, and is the largest gold smelting enterprise in China.

Dishui Gold-Copper Mine is an underground mine with a daily production capacity of 1,200t.

The mine has completed the construction of a processing factory with a daily processing capacity of 1,000t and a copper floatation recovery rate of around 80%.