Hunan Nonferrous Metals Corp has agreed to increase the stake it will acquire in struggling tungsten alloy producer China Tungsten and Hightech Materials, further cementing its leadership in making a widely used tungsten alloy, cemented carbide.
Shanghai-listed China Tungsten said Hunan Nonferrous signed an agreement with the government of Zigong, Hunan province, to expand the registered capital of Zigong Hard Alloy to 500 million yuan.
Zigong Hard Alloy is China Tungsten's second-largest shareholder with a 14.97 per cent stake.
Of the 500 million yuan, 100 million yuan is the net asset value of China Tungsten after restructuring expenses.
Hunan Nonferrous will contribute the remaining 400 million yuan, which would give it an 80 per cent stake in Zigong Hard Alloy.
In a separate agreement, Hunan Nonferrous will buy a further 3.15 per cent stake in China Tungsten from Hainan Jinchang Travel Enterprise.