Dingli to Acquire Majority Stake in Xinbao Mining

21 June 2011 (Last Updated June 21st, 2011 18:30)

Shanghai Dingli Technology Development has unveiled plans to acquire a 51% interest in Guilin Gongcheng Xinbao Mining for 178m yuan ($27.5m). Shanghai Dingli also intends to invest an additional 102m yuan ($15.7m) in Xinbao Mining following the purchase. Xinbao Mining owns the pr

Shanghai Dingli Technology Development has unveiled plans to acquire a 51% interest in Guilin Gongcheng Xinbao Mining for 178m yuan ($27.5m).

Shanghai Dingli also intends to invest an additional 102m yuan ($15.7m) in Xinbao Mining following the purchase.

Xinbao Mining owns the prospecting rights to the Ludiping copper mine in Guangxi, China, which has total reserves of 6.92Mt and renewable reserves of 5.88Mt, which include tungsten, tin, molybdenum and copper.

Dingli Technology plans to apply for exploration rights at the site, which it hopes to obtain by August 2011, reports capitalvue.com.

Once the exploration rights are received, Xinbao Mining will build an annual exploration capacity of 200,000t.

Dingli Technology also acquired a 10% interest in Cenxi Rare Earth for 40m yuan ($6.1m) in February 2011.