By Kari Williamson
China Daye will acquire a 95.35% equity interest in Daye Metal from Daye Metal's largest shareholders China Times Development Ltd and China Cinda (HK) Asset Management Co Ltd at a consideration of approximately RMB5.816 billion.
Daye Metal produces and sells copper cathodes, gold and silver. It holds the mining rights to four mines in the Hubei Province – the Tonglvshan Mine, the Fengshan Mine, the Tongshankou Mine and the Chimashan Mine.
Zhang Lin, Chairman of Daye Nonferrous Metals Corporation Holdings Ltd, says: "China is by far the world's largest copper cathode consumer. However, the country as a whole does not have sufficient copper resources to support ever-rising domestic consumption, therefore curbing capacity expansion of the copper industry.
“After the injection of Daye Metal, China Daye will have a significant portfolio of high-grade copper reserves and resources, which will enable us to secure a stable supply of copper concentrates and help reduce our exposure to fluctuations in copper concentrate prices.”
