Guangsheng Nonferrous to list tungsten and

Tag : tungsten
September 06, 2008
Guangsheng Nonferrous to list tungsten and rare earth assets
Interfax China reported that state owned Guangdong GuangshengNonferrous Metals Group has obtained China Securities RegulatoryCommission approval to list its tungsten and rare earth assets onthe Shanghai Stock Exchange through a share-asset swap withShanghai listed Hainan Xingye Polyester Co Ltd. Upon completion ofthe share asset swap, Guangsheng Nonferrous will hold a total of124.76 million shares or a controlling 50.02% stake in XingyePolyester.

According to the company's back door listing plan, GuangshengNonferrous will sell its interests in 14 tungsten and rareearth-related subsidiaries, worth approximately CNY 267.66 millionin return for 36 million new shares issued by Xingye Polyester at aper share price of CNY 6.68 and the entire assets of XingyePolyester, which will be further traded for a total of 88.76million shares held by three Xingye Polyester shareholders.

Through the share asset swap, the listed company will obtainvarious assets held by Guangsheng Nonferrous' 14 subsidiariesincluding five tungsten mines which contain a combined 1.15 milliontonnes of tungsten ore reserves and are expected to produce acombined 1,400 tons of tungsten dioxide grading 65% in concentrateform this year, as well as two rare earth mines which are expectedto produce approximately 1,000 tonnes of rare earth dioxide in2008.

An official with Pingyuan Huaqi Rare Earth Industrial Co Ltd aGuangsheng Nonferrous rare earth subsidiary told Interfax that"Guangsheng Nonferrous currently holds two mining rights in MeizhouCity's Pingyuan county to a combined 11,600 tonnes worth of rareearth dioxide reserves and intends to acquire the remaining tworare earth mining rights in Guangdong Province in Shaoguan City'sXinfeng county and Heyuan City to become the province's soleofficial rare earth miner."

The official said Guangsheng Nonferrous also plans to construct tworare earth smelting bases in Xinfeng and Heyuan and a rare earthprocessing facility in Heyuan.

Guangsheng Nonferrous also plans to further secure its tungstenreserves through deep exploration and acquisitions and constructtungsten processing facilities that produce high value addedtungsten products. In addition to the tungsten and rare earthassets, Guangsheng Nonferrous also owns exploration rights to theShilu copper deposit and the Houpo'ao silver deposit, both thelargest of their kind in Guangdong Province. The company isapplying for mining rights to the copper deposit while continuing afeasibility study on the development of the silver deposit.

State-owned Guangdong Guangsheng Asset Management Co Ltd,Guangsheng Nonferrous' parent also controls Shenzhen-listedZhongjin Lingnan Nonfemet Co Ltd which specializes in lead and zincmining and smelting.