China's Daye Non-Ferrous, partners to build 400,000 T copper plant

China Daye Non-Ferrous Metals Mining

30/08/2019 09:29

* Daye, partners to invest 5.7 bln yuan in Hubei copper
project
    * Production to start in first half of 2021 - filing
    * Project expected to generate 20 bln yuan of revenue
annually

    By Tom Daly
    BEIJING, Aug 30 (Reuters) - China Daye Non-Ferrous Metals
Mining  0661.HK  said on Friday its subsidiary would take a
majority stake in a 5.7 billion yuan  ($803.63 million) plant
that will produce 400,000 tonnes a year of refined copper in its
home province of Hubei from 2021.
    The announcement comes at a time of uncertainty over the
prospects of copper demand in China, the world's biggest
consumer of the metal widely used in power and construction,
amid a bruising trade spat with the United States.
    Daye Non-Ferrous, which produced 500,400 tonnes of copper
cathode in 2018, said its Daye Metal unit would stump up 1.3
billion yuan, or 52% of the equity in a joint venture (JV)
company that will set up the plant in the city of Huangshi,
central China, according to Hong Kong stock exchange filing. 
    Trading in Daye's shares has been suspended since Aug. 28
pending the announcement. 
    The other partners in the JV company, provisionally named
Daye Non-Ferrous (Xingang) Copper Co Ltd, are Huangshi
state-owned Assets Management on 8%, subsidiary Huangshi Xingang
on 16%, and China No. 15 Metallurgical on 24%. Daye Metal will
nominate three of the JV's five directors.
    Like Daye Non-Ferrous, China No. 15 Metallurgical is
controlled by state-owned Chinese miner China Nonferrous Metal
Mining Group (CNMC).  urn:newsml:reuters.com:*:nL3N25N26M
    The plant "is expected to commence construction in the
second half of 2019, with ... commencement of production of
copper cathode in the first half of 2021," the filing said,
adding that the plant was expected to generate annual revenue of
more than 20 billion yuan.
    The partners are looking for a "suitable piece of land" for
the project, which will have a site area of 1,500 mu (247
acres), in a Huangshi Xingang industrial park, the filing said. 
    ($1 = 7.0928 Chinese yuan)

 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))