Baosteel invests in Dounan Manganese Industry Co

Wednesday, 05 May 2010 17:59:52 (GMT+2)

China-based Yunnan Metallurgical Group Co., Ltd recently signed a strategic cooperation agreement with Baosteel Resources Co., Ltd, a subsidiary of Chinese steel giant Baosteel Group. According to the agreement, Baosteel Resources Co., Ltd is to make an investment in Dounan Manganese Industry Co., Ltd, which is a subsidiary of Yunnan Metallurgical Group Co.,Ltd. Accordingly, Baoseel Resources will acquire a 12 percent stake in Dounan Manganese Industry, becoming its second largest stakeholder.

The strategic cooperation agreement will also involve the combination of Baosteel's advantage in integrating overseas resources and Yunnan Metallurgical Group's advantage in geological prospecting, mine development and management, with a view to overseas mine development. It is will also involve the combination of Baosteel's advantage in overseas manganese mine procurement and steel production with Yunnan Metallurgical Group's expertise in ferroalloy production, with the aim of further cooperation in manganese mines and ferroalloy purchases and sales. It will also involve the sharing of Baosteel's international logistics platform and Yunnan Metallurgical Group's technological research in the area of ferroalloys.

Yunnan Metallurgical Group has two listed subsidiary companies: Yunlv Holdings and Chihong Zinc and Germanium. Dounan Manganese Industry Co., Ltd focuses mainly on manganese mining and manganese alloy production. Dounan is also preparing to become a listed company.

At the end of 2009 Baosteel Resources had bought a 10 percent stake in Jiangxi Yongsheng Mining and Metallurgy Co., Ltd.

 previous article  /  next article