Zijin Mining Plans A-share Ipo This YearPublished by MAC on 2007-05-28
Source: Interfax China Metals
Zijin Mining plans A-share IPO this year
Hong Kong-listed Zijin Mining Group Co. Ltd., one of China's largest gold miners, is planning an A-share IPO at the end of the year, a company official told Interfax on May 21.
"We are aiming to hold the A-share IPO by the end of the year at the earliest," a Zijin Mining securities department official, surnamed Zhang, said. "The completion of the A-share IPO will definitely aid in funding overseas expansion."
According to Zhang, Zijin Mining is currently undergoing initial talks for several overseas mining projects in order to secure resources, including the lead and zinc mine in Tuva Republic in the east of Russia's Siberia, a copper and nickel project in Russia, and gold mining projects in Vietnam and Mongolia.
However, Zhang declined to further comment on project plans.
"Zijin Mining also plans to construct a 400,000-ton copper smelter in Fujian Province," Zhang said. "The overseas copper mining projects will provide raw material for the smelter."
Over the past two years, Zijin Mining's primary focus has been on overseas rather than domestic mining projects, including the Rio Blanco copper mine in Peru *, a laterite nickel project in Burma and projects at the Blue Ridge platinum mine and Sheba's Ridge polymetallic mine, both located in South Africa.
Zijin Mining produced 46,280 kilograms of gold in 2006, up 135 percent from the previous year. Copper output increased by 103 percent to 40,302 tons last year, including 6,781 tons of copper cathodes, 33,187 tons of copper concentrate and 334 tons of copper. The company also produced 54,703 tons of zinc and 600,000 tons of iron concentrate. Zijin Mining's shares closed at HKD 4.39 ($0.56) last Friday, down 0.45 percent from the previous day's trading.
*Editorial note: The Rio Blanco project is managed by Monterrico Metals, listed on the London Stock Exchange. Zijin acquired the majority of shares in Monterrico last month.