On April 8, Chengtun Mining Group Co., Ltd. disclosed in an announcement that its wholly-owned subsidiaries, Hongsheng International Resources Co., Ltd. and Preeminence, signed an equity acquisition agreement with Novel Mining based in Abu Dhabi, UAE, and its wholly-owned subsidiary Nkoyi. Under the agreement, Preeminence plans to acquire a 50% equity interest in Nkoyi for US$300 million, thereby obtaining a 30% interest in the mining rights of a core copper-cobalt mine in the Democratic Republic of the Congo (DRC).
The announcement stated that Nkoyi holds a 60% interest in the mining rights of a specific copper-cobalt mine in the DRC. The mine is located in the core area of the Central African Copper-Cobalt Belt, on the western outskirts of Kolwezi, surrounded by numerous large-scale mines. The mining area covers 10.922 square kilometers and benefits from well-developed transportation infrastructure, with all of Chengtun Mining's CCR, CCM, and KMSA smelting facilities located within 51 kilometers.
According to the transaction arrangement, upon completion of the acquisition, Chengtun Mining will indirectly hold a 30% interest in the mining rights of the copper-cobalt mine, and Nkoyi will become a subsidiary accounted for under the equity method (non-consolidated subsidiary). The mine has not yet commenced commercial production. The mining rights certificate is valid until January 2040, covering copper and cobalt as the mining minerals. Based on preliminary estimates by Chengtun Mining's technical team, the mine has a copper grade of 1.66% and a associated cobalt grade of 0.67%. The copper resource reserves significantly exceed the standards for large-scale copper mines in China, and the presence of substantial associated cobalt resources offers considerable potential for future resource expansion.
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Edited by Cassie Li, lixiangying@mysteel.com
