Zijin Tongguan sells 10 pct stake in Monterrico to South Korean copper smelterPublished by MAC on 2007-09-14
Zijin Tongguan sells 10 pct stake in Monterrico to South Korean copper smelter
source: Interfax China Metals
14th September 2007
Xiamen Zijin Tongguan Investment Development Co. Ltd. has entered into an agreement to sell an approximate 10 percent stake in London-listed Monterrico Metals Plc to a South Korean copper smelting company, according to a recent Monterrico announcement.
Zijinn Tongguang currently holds 23.65 million shares, or an 89.9 percent stake in Monterrico, and intends to transfer 2.63 million shares to South Korean-based LS-Nikko Copper Inc. at a price of GBP 3.70 ($7.52) per share.
The stake transfer, which is scheduled to complete on Sept. 21 this year, will reduce Zijin Tongguan's interests in Monterrico to 79.9 percent.
As previously reported by Interfax, Zijin Tongguang completed an 89.9 percent stake acquisition in Monterrico on April 27, 2007, thereby obtaining access to Monterrico's Rio Blanco copper and molybdenum project in northern Peru.
Zijin Tongguan was established in the city of Xiamen, Fujian Province, in August 2006 by the Zinjin Mining Corp., which holds a 45 percent stake, Tongling Nonferrous Metals Group, which holds a 35 percent stake and Shanghai-listed Xiamen Construction and Development Inc., which holds the remaining 20 percent stake.
LS-Nikko, the world's second largest copper smelter, was co-established by South Korea's LS Cable, formerly LG Cable, and Japan Korea Joint Smelting in September 1999. LS-Nikko's current assets include the Onsan smelter and refinery, which has an annual capacity of 510,000 tons of copper cathodes, and the Janghang refinery, which has an annual capacity of 60,000 tons.