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Galeno ball starts rolling
By Hou Qingyang (China Daily/Agencies)
Updated: 2009-10-22 08:51

China Minmetals Corp, a major State-owned metals and mineral trader, expects to begin construction of the Galeno copper mine in Peru next year and production by 2012, the company's assistant president Zhang Shoulian said yesterday.

The Galeno copper mine, purchased jointly by China Minmetals and Jiangxi Copper Co early last year, is believed to have 20 years of mine life and an annual production estimate of 144,000 tons concentrate.

"We plan to start production at Galeno by early 2012, as we have already completed the systematic feasibility studies on the mine," Zhang told reporters on the sidelines of the China Mining Congress being held in Tianjin.

The company is increasingly looking to the South American markets for mine resources investment, Zhang said, adding that copper was its main focus, apart from other metals like iron, zinc, nickel and lead.

Minmetals is also extending its global footprint for mining resources to Europe. During the Chinese Vice-President Xi Jinping's recent visit to Bulgaria, the company inked a $800-million contract with Aurubis, Europe's largest copper smelter, to buy refined copper over the next six years.

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On the domestic front, Minmetals is planning to take over Hunan Nonferrous Corp, the nation's top zinc producer, even though the two companies have declined to confirm the development.

The two companies signed an agreement last September, under which Minmetals could purchase 40 percent of Hunan Nonferrous Corp from its top shareholder Hunan Nonferrous Group.

The nation has recently stepped up its efforts to seek more foreign resources amid the economic downturn. However, its plans have hit obstacles, with the most notable being Chinalco's failure to clinch a deal with Rio Tinto.

Galeno ball starts rolling
Codelco's Andina open pit copper mine in the Andes mountains of Chile is pictured in this file photo. [Agencies]

Minmetals suspended acquisition talks with Codelco, the Chilean State-owned copper mining company, due to opposition from the workers union last year. The two companies are now planning to cooperate on exploring other mining resources in Asia and Latin America.

"We will keep trying, as the government will continue to encourage companies to go abroad. China's raw materials alone cannot satisfy demand, hence it is vital to look for opportunities, abroad," he said.

 


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