Following the announcement of its purchase of Australia's OZ Minerals Ltd, China Minmetals Corp. is now to acquire two state-owned enterprises directly controlled by China's central government, namely, Luzhong Metallurgy & Mining Group (LMMG) and Changsha Research Institute of Mining and Metallurgy (CRIMM).
Based in Laiwu city, Shandong, LMMG mainly produces iron ore and has three mines in the areas of Laiwu and Yantai, with total reserves of approximately 330 million mt. With an annual production capacity of 2.4 million mt of iron ore and one million mt of iron ore concentrate, LMMG is the largest iron ore supplier in the province of Shandong.
CRIMM ranks 142nd among the 143 state-owned enterprises directly controlled by the central government, with its main business focused on developmental research and comprehensive utilization of mining resources, as well as on development and manufacturing of new materials.
With its key business in the fields of non-ferrous and ferrous metals, China Minmetals Corp. saw an increase of 15.9 percent in its 2008 revenues which reached RMB 180.9 billion, and achieved a net profit of RMB 7.1 billion during the year, up RMB 300 million compared with the previous year.