Minmetals sees improved 2010 results

13:48, November 24, 2010      

Email | Print | Subscribe | Comments | Forum 

China Minmetals Corp, China's largest steel and metals trader, expects an 80 percent increase in its fortunes this year, with increased profit, propelled by a rally in metal prices despite recent pullbacks and good returns from its overseas mining resources.

"Revenue may rise by 70 to 80 percent this year, while profits will perform better (than the revenue), on the back of the recovering commodity prices and returns from overseas acquisitions," Zhou Zhongshu, president of Minmetals, told China Daily.

The Beijing-based company is engaged in producing and trading metals and minerals, including steel products, copper, aluminum, zinc and nickel.

Metals prices, including copper, settled lower on Tuesday on concerns prompted by the European Union's bailout of Ireland and ongoing worries about China's future steps to curb loans and cool inflation.

Copper jumped 42.9 percent to trade at 70,200 yuan ($10,570) a ton on Nov 11 from June, while zinc rose from 13,855 yuan a ton in June to 21,930 yuan in October. Copper dropped to 61,490 yuan a ton and zinc slipped to 17,200 yuan a ton on Shanghai Futures Exchange on Tuesday, according to the consultancy firm, Umetals.com.

Metal prices have been ramped up this year on the back of growing industry demand, driven by China's strong economic growth, said Wang Lixin, an analyst at Umetal.com.

"Commodities are so financially related that prices slipped on concerns over eurozone debt, despite the market demands that still exist there, " she said.

Minmetals' revenue dipped 4 percent last year to 173 billion yuan from 181 billion yuan in 2008, as the global economic crisis dampened commodity prices. Profit slumped nearly 50 percent year-on-year in 2009 to 3.15 billion yuan.

In spite of the revenue decline due to lower commodity prices, the company's assets grew 136 percent as it successfully acquired several domestic and overseas mining operations.

The company paid $1.39 billion for zinc producer OZ Minerals in June 2009 to expand its presence in Australia.

Zhou said the company's overseas subsidiary Minerals and Metals Group (MMG) will serve as an international investment platform and is planning more overseas mergers and acquisitions to bolster the company's raw material supplies.

China, which dominated the global resources transactions market last year, will maintain significant growth in the next 10 years, driven by the country's need to secure raw materials to support its rapid economic transformation, said David Xu, partner of transactions and restructuring sector at KPMG China.

China Business News earlier reported that Minmetals plans to list its rare earth unit after prices rose to a record high amid supply concerns, citing an unidentified source.

Zhou said Minmetals is paying close attention to the rare earth sector. "We will release any information (about the listing) when necessary, " he said.

China Minmetals Rare Earth Co Ltd, which produces the more expensive heavy rare earth elements from its operations in the Ganzhou area of Jiangxi province, reported revenue of 1.98 billion yuan in 2009.

Source: China Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion