SHANGHAI, Aug. 5 (SMM) – Yunnan Tin Co. proposed to buy 75.74% stake in Hualian Zinc & Indium Stock Co. with an estimated 3.75 billion yuan ($608 million), the company told Shenzhen Stock Exchange today.
Although Yunnan Tin turned a profit in the first half this year, the company has suffered from thinner profits in 2011 and 2012, and reported losses in 2013, due to depressed demand and falling metal prices.
The transaction will enable Yunnan Tin to gain high-quality mineral resources and expand capacity, as well as to improve profitability, the company said.
Hualian Zinc & Indium owns abundant tin, zinc and indium ore resources. Its Tongman mine has tin ore reserves of 278,538 tonnes and zinc reserves of 3,154,771 tonnes.