Minmetals closes in on US$500m Cuban deal

China Minmetals Corp, the nation's biggest base metals trader, is set to finalise a US$500 million nickel mining and smelting joint-venture project in Cuba this year as it transforms into an international resources firm and metals producer, according to a company official.

'We hope to be able to conclude the deal this year and get a controlling stake over the project,' Wang Jionghui, general manager of the company's mining resources division, said on the sidelines of a conference in Shanghai.

The project in the Moa area of the eastern province of Holguin has been under negotiation since 2003. However, it stalled after a memorandum of understanding was signed in 2004.

The delay concerned the possibility of extra investment, mainly in the building of power plants for the project, market sources said.

Mr Wang did not indicate why progress in the talks was so slow, saying only that the details were still being studied and that these could be concluded this year.

State-owned Minmetals is moving into nickel production as the mainland struggles to meet its demand for the metal, a key element in making stainless steel, and the nation's steel industry increases capacity.

'China's nickel raw materials supply will remain tight until 2010, and more than half of that supply will be reliant on imports,' said Zhang Mei, a researcher with the ministry's Information Centre.