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China Geological Exploration to list mining assetson SGX via
USINFO | 2013-11-12 14:32
The CGE is a company ultimately owned by the Geo-exploration and Mineral DevelopmentBureau of the Henan Province, a government institution responsible for resource mining andexploration activities. It has 200 licenses in China and close to 100 licenses in over 20countries.
According to CGE, the Mineral Development Bureau of the Henan Province "intends toleverage China Mining as its key investment platform to list and internationalize its miningassets, in particular similar-natured brownfield and late stage mines."
As part of the RTO, there will be 5 mining assets injected into China Mining, including atantalum-niobium mine in Nigeria, a tin- copper mine in Tajikistan, an iron ore mine in SouthAustralia, and two iron ore mines in China's Xinjiang.
Upon the successful completion of the RTO, CGE will become the single largest shareholder ofChina Mining, which will in turn be transformed into a pure mining company.
The CGE did not reveal the cost of the transaction and its expectation of the revenues of themining assets. The proposed move is still subject to the approval of China Mining'sshareholders and the approval of the SGX.
Tang Quanguo, chairman of CGE, said its company has a strong pipeline of assets from itscontrolling shareholder, the Mineral Development Bureau of the Henan Province.
He said for the RTO, they has focused on mining assets which are in advanced stage ofexploration. "Barring unforeseen circumstances, the mines in Nigeria and Tajikistan areexpected to commence production within the next six months," he added.
China Mining was formerly known as Sunshine Holdings Limited, a Henan-based developer ofresidential and commercial properties, which began its listing in SGX in 2006. In 2011, it soughtthe approval of shareholders to diversify into the mining business and changed to its presentname in March of 2012.
