Jiangxi Copper Co Ltd (JCCL), the second mainland firm to seek dual Hong Kong-London listings, plans to acquire a mine from its parent after it goes public, say sponsors Merrill Lynch and ABN-AMRO Rothschild. The H share, expected to raise about US$200 million from its listings next month, has entered into a sale-and-purchase agreement with its parent - Jiangxi Copper Co - to buy the Chengmen Shan Mine for 128 million yuan (about HK$119.42 million). The mine has an estimated 226 million tonnes of metal reserves, including copper, gold and silver, and is in the northwest of Jiangxi province. The company also has an option to buy exploration and mining rights held by its parent at mines in Wushan, Dongxiang and Yingshan. In a pre-listing restructure, JCCL already has received mines in Dexing and Yongping and a smelter in Guixi from its parent. The sponsors have yet to release listing details, but it is understood that JCCL will issue new shares amounting to 28.9 per cent of its enlarged share capital, equivalent to 722 million shares. Jiangxi Copper Co, controlled by the China National Non-ferrous Metals Industry Corp, will see its interest in JCCL fall from 72 per cent to 51 per cent. International Copper Industry (China), which is owned jointly by Silver Grant and China Non-Ferrous Metal Holdings (Hong Kong), will have a 20 per cent stake. The remaining 0.08 per cent will be held by three mainland entities - Shenzhen Baoheng, Shangrao Zhengda, and Huangshi Gold and Copper Mine. According to Merrill Lynch, JCCL's net profit plunged almost 48 per cent to 201 million yuan last year, hit by falling copper prices following the Sumitomo crisis. The brokerage expects its profit to more than double to 501 million yuan this year and rise to 551 million yuan next year. Merrill Lynch said JCCL was highly sensitive to changes in copper prices and estimated that a 10 per cent reduction in copper prices could result in a 35 per cent drop in net profit. ABN-AMRO said there was a risk of lower copper prices in the second half of this year as a result of China's moderate economic growth and rapidly rising output.