Yunnan Tin buys two iron ore mines for $155m

Yunnan Tin, the largest tin producer in China, has agreed to buy two iron ore mines in Xinjiang, in the west of the country for HKD1.2 billion ($155 million).

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The Hong Kong-listed miner will pay HKD690 million ($89 million) in cash, 1.05 billion new shares and HKD300 million ($39 million) convertible bonds to Mega Marks Ltd, owner of the mine, Yunnan Tin said on Thursday December 12.

The company’s shares in Hong Kong, halted since February 2013, resumed trading in Hong Kong today.

The iron ore sales revenue from the two target iron ore mines stood at HKD364.2 million ($47 million) in 2012, compared with HKD215.8 million ($28 million) a year earlier, according to the announcement.

“The acquisition represents a valuable investment opportunity for the group, having considered the amount of proved and probable reserves as well as indicated resources at the target mines,” Yunnan Tin said.

Mega Marks commenced production at the two mines in 2009, achieving a run-of-mine output of 2.54 million tonnes by the end of 2011.

Its ore 2-million tpy ore processing plant also came into operation in 2009. A new line with 1.5 million tpy processing capacity is scheduled to come on stream in 2015.

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.