Minmetals Development to acquire 100% equity of Minmetals Mining and Luzhong Mining

Minmetals Development Co., Ltd. has announced its plan to acquire 100% equity interest in Minmetals Mining Holdings Co., Ltd. and 100% equity interest in Luzhong Mining Co., Ltd. held by China Minmetals Corporation Limited through a combination of asset swap, share issuance, and cash payment. The Company also plans to raise supporting funds by issuing shares to no more than 35 specific investors.

Under the proposed transaction, Minmetals Development will swap its 100% equity interest in Minmetals Trading for an equivalent value portion of the 100% equity interests in Minmetals Mining and Luzhong Mining. The remaining balance between the value of the assets to be acquired and those to be disposed of will be settled by Minmetals Development through the issuance of shares and cash payments to Minmetals Corporation. The transaction consideration for the assets to be acquired is RMB28,115 million (USD4,153 million), while the consideration for the assets to be disposed of is RMB5,519 million (USD815 million).

Upon completion of the transaction, the core business of Minmetals Development will pivot to the development and utilization of ferrous metal mineral resources, with a primary focus on iron ore mining, beneficiation processing, and iron concentrate sales. Concurrently, the company will exit its existing trading operations.