Key facts
Minmetals Development disclosed a draft major asset restructuring plan. It plans to divest 100% of Minmetals Trading for RMB 5.519 billion and acquire 100% of Minmetals Mining and Luzhong Mining, both under Minmetals Co., Ltd., for RMB 28.115 billion. The RMB 22.595 billion difference will be paid through a combination of share issuance and cash, and the company also plans to raise no more than RMB 8 billion for mine construction and cash consideration in the transaction. Upon completion of the restructuring, Minmetals Development will transform from a steel trader into an iron ore resource company.
Related progress
Regarding the target assets, Minmetals Mining and Luzhong Mining have combined iron ore resources of about 2.163 billion tonnes, accounting for approximately 12.79% of national reserves. Among them, Anhui Development Mining has an annual raw ore capacity of 7 million tonnes; Luzhong Mining has an annual raw ore processing capacity of 6 million tonnes; and Chentaigou Iron Mine has retained resources of 1.2 billion tonnes, with designed annual production of 11 million tonnes of iron ore and 4.7 million tonnes of iron concentrate.