African Minerals Set to Acquire Majority Stake in Zambian Copper Mine
Sinomine Resource Group's subsidiary, African Minerals, is poised to acquire a 65% stake in the Zambian copper mine, Junction Mining, for USD 58.5 million. This strategic purchase from Momentum Ventures and Chifupu Resources aims to bolster Sinomine's presence in the global copper market. The announcement saw Sinomine's shares climb 6.8% to close at CNY 40.79 (approximately USD 5.67) in Shenzhen.
Junction Mining's principal asset, the Kitumba copper project in Zambia, boasts 27.9 million tons of proven copper mineral resources. These figures are based on a 2015 evaluation by MSA Group, an independent third-party organization. The project spans an area of 248 square kilometers, with mineral rights extending from November 2014 to November 2039.
Post-transaction, Sinomine will hold a 65% stake in both Junction Mining and the Kitumba copper project, further expanding its footprint in the international mining sector. Established in 1999, Sinomine is a comprehensive Chinese mining group operating across more than 40 countries and regions.
This acquisition aligns with China Mining Resources Group's strategic objective to enhance its copper resource development and mining capabilities. It is expected to significantly increase the company's copper production resource reserves, thereby bolstering its market competitiveness and capacity for sustainable growth.
