A consortium led by China's biggest gold miner, Zijin Mining Group Co (
The proposed acquisition, announced earlier this week by Monterrico and Zijin, is the latest in a series of low-profile but substantial purchases of overseas mining assets by Chinese companies -- part of the country's quest to diversify supplies of strategically important resources.
Monterrico, a London-based resource company with shares traded on the Alternative Investments Market, holds rights to the undeveloped Rio Blanco copper and molybdenum deposits in northern Peru, which the company says could yield up to 25 million tonnes of copper ore a year.
Zijin holds a 45 percent share in the consortium, with Chinese copper miner Tongling Nonferrous Metals (Group) Inc (銅陵有色金屬) taking 35 percent and Xiamen C&D Corp (建發集團), a trading and real estate conglomerate, holding 20 percent, Zijin said in a statement to the Hong Kong Stock Exchange.
The consortium, dubbed Xiamen Zijin Tongguan Investment Development Co (
Monterrico's board unanimously recommended that shareholders accept its offer.
Previous overseas acquisitions by Chinese companies have involved non-listed companies or joint venture arrangements, state media reports said.
China imports about 70 percent of all the copper it uses and wants a wider supply base. This week, President Hu Jintao (胡錦濤), on an eight-nation African tour, offered a multimillion dollar investment package to copper-rich Zambia, where Chinese firms have spent billions of dollars developing the sector.
In September, the Aluminum Corp of China (中國鋁業), or Chalco, acquired the rights to develop a bauxite mine and alumina refinery project, at an estimated cost of US$2.2 billion, in the Australian state of Queensland. Chalco has also committed US$1.6 billion to develop a bauxite and alumina project in Vietnam.
Like Chalco, which also has shares traded in Hong Kong, Zijin is keen to take advantage of its cash-rich position to expand its assets. It announced last week plans for an initial public offering in Shanghai to raise funds for further expansion.
"The proposed acquisition of Monterrico would represent an important increase in the company's resources and production," Zijin said of its acquisition of loss-making Monterrico.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for