China Minmetals Corp, the nation's largest metal trader, said yesterday it will join forces with the world's sixth-largest copper supplier, KGHM Polska Miedz SA of Poland, to develop local and overseas non-ferrous metal resources.
The two companies will jointly develop copper mines in Poland, China or a third country, according to a framework agreement signed in Beijing.
The deal is the latest in Minmetals' push to diversify.
"The move is expected to combine KGHM's expertise in copper development and manufacturing with Minmetals' advantages in capital and sales channels," the Chinese firm said.
The two companies are considering exploring a new non-ferrous mine in the Inner Mongolia Autonomous Region, according to Krzysztof Skora, chairman and CEO of KGHM.
"The agreement symbolizes the two companies' further cooperation beyond trade," said Zhou Zhongshu, president of Minmetals.
Minmetals has partnered with KGHM since 1997 in electrolytic copper and has become its exclusive importer in China. It has imported 400,000 tons of electrolytic copper from KGHM worth $1.1 billion.
Its annual import from KGHM accounts for nearly half of China's total imports from Poland.
KGHM gained 2.3 percent on Tuesday and was the most actively traded stock on the Warsaw market.
Source: China Daily