SHANGHAI, Oct. 11 (SMM) - Guangxi Communications Investment Group issued a letter of intent to acquire Guangxi Chengyuan Mining & Smelting Co. to diversify into antimony, lead and other base metal sectors.
Guangxi Communications intends to buy the mining company from Hechi City Tieda Co. and Mr. Zhou Shengtie, each holding a 70% and a 30% interest, respectively.
The toll road operator ``is taking the chance to diversify into a second principle business with fundamentals being sluggish in base metals industry and a consolidation drive ongoing in Hechi city’s metal companies,’’ it told Shanghai Stock Exchange on Thursday.
Guangxi Chengyuan’s main products are lead ingots, antimony ingots, silver products and antimony ores. Its subsidiary Nanxing Antimony Industry Co. owns a Chashan mine rich in antimony resources, which remains closed at present, Guangxi Communications said in a statement.
Hechi city, where Guangxi Chengyuan is based, is the main lead mining and production centre in south China. Guangxi Chengyuan’s lead brand CY is deliverable to both London Metal Exchange and Shanghai Futures Exchange.