China Minmetals consolidates key iron ore assets via strategic reallocation

By divesting the principal assets and liabilities related to its existing trading and supply chain businesses (excluding retained assets and liabilities), Minmetals Development plans to acquire the 100% equity stake in Mimetals Mining Holding Co., and the 100% equity stake in Luzhong Mining Co., both currently held by China Minmetals Corporation, according to the announcement.

The difference between the transaction prices of the assets to be acquired and those to be swapped out will be settled by Minmetals Development through issuing shares and paying cash to Minmetals Corporation, with additional supporting funds to be raised by issuing shares to specific investors.

The assets to be acquired are primarily engaged in iron ore mining, processing, and iron ore concentrates sales. Should the restructuring succeed, Minmetals Development will focus its future operations on iron ore mining businesses, while retreating from resource trading, metals trading, and supply chain services, the announcement clarified.

For the listed firm's targeted assets, Minmetals Mining is headquartered in Beijing and operates six iron ore mines across China, with an annual production capacity of 16 million tonnes of run-of-mine iron ore and 6 million tonnes of iron ore concentrates, while Luzhong Mining is based in East China's Shandong province, achieving an annual output of over 1.35 million tonnes of iron ore concs, Mysteel Global has learned from these companies' official websites.

This transaction will also help resolve the competitive conflict between Minmetals Development and Minmetals Group's overseas trading arms, according to the announcement.

Moreover, the consolidation of premium iron ore assets into Minmetals Development will strengthen its strategic focus on iron ore mining and processing, which will drive continuous improvement in the listed firm's corporate quality and generate lasting value for investors, the announcement highlighted.

Over January-September 2025, Minmetals Development's operating revenue dropped 20.4% on year to Yuan 40.9 billion ($5.9 billion), while its net profit attributable to shareholders fell 16.4% on year to Yuan 114 million, according to the company's financial report released last October.

During the same period, Minmetals Mining reported operating revenue of Yuan 2.3 billion and net profit attributable to shareholders of Yuan 503 million. For this part, while Luzhong Mining achieved operating revenue of Yuan 1.3 billion and shareholder net profits of Yuan 185 million, Mysteel Global learned.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com