SHANGHAI,Sept.26th(CBI China) -- Jiangxi Copper announced on September 22nd its intention to raise RMB 13.6 billion in funds, RMB 7.16 billion of which will be used in acquiring and developing overseas copper resources.
Jiangxi Copper will use RMB 2.5 billion to acquire two overseas mines in Peru and Afghanistan. The first target is the Galeno mine, owned by an affiliate of Northern Peru Copper Corp, Canada, with copper reserves estimated at 3.30 million mt. Jiangxi Copper and China Minmetals Group have acquired 100% of Northern Peru Copper Corp, with Jiangxi Copper holding 40% of shares. The other target is the Aynak Copper Mine, located in Afghanistan, with copper reserves estimated at 11 million mt (metal content). The agreement was signed by the Afghan Government and Jiangxi Copper and China Metallurgical Group Corp in early June 2008.
At present, over 2/3 of China's copper concentrate needs are met by imports. Although Jiangxi Copper has the highest self-sufficiency rate in China for raw materials necessary to produce copper cathodes, the dependence on imports is growing along with the rapid expansion of smelting capacity. If Jiangxi Copper's acquisition plans are successful, by 2012, the proportion of copper concentrate sourced internally will rise to 50% from the existing 27% level, greatly reducing dependence on outsourced materials.
Founded in January 1997, Jiangxi Copper is a leading smelter in the Chinese copper sector. It is the first company listed in London, Hong Kong, and Shanghai simultaneously. The company has a copper cathodes production capacity of 700kt/yr, ranking first in China and third in the world in this category.
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