China invests in Afghani copper mine

Tag: copper products

Jiangxi Copper announced yesterday it will invest US$329.3 million (HK$2.57 billion) in a joint venture with state-owned China Metallurgical Group Corporation to develop the Aynak copper mine in Afghanistan.

Jiangxi Copper and China Metallurgical will set up a project firm with US$4.391 billion in capital, with 25% of the shares initially to be held by Jiangxi Copper. The 2 firms have also agreed to introduce independent investors to the project company.

Jiangxi Copper has the preemptive right to purchase all the products generated from the mine, except those required by China Metallurgical for its production needs. Jiangxi Copper, which is guaranteed 50% of the mine's output, had announced last month that its consortium with China Metallurgical would pay US$808 million to the Afghanistan government for the right to develop the central and western zones of the Aynak mine for 30 years.