CRCC, Tongling buy Corriente for C$679m

Canadian mining firm Corriente Resources has signed a conditional agreement to be fully acquired by China Railway Construction Corp and Tongling Nonferrous Metals Group Holdings for C$679 million (HK$5.06 billion).

The deal enables CRCC, a state-owned rail construction firm, and Tongling Nonferrous, a state-owned mining firm, to invest in Corriente's copper mines in Ecuador, which recently passed laws favourable to foreign mining firms.

Corriente, which trades in Toronto and New York, owns 62,000 hectares within the Corriente Copper Belt in Ecuador and has faced violent protests against its mining operations in the Latin American nation in recent years.

'The board of Corriente has unanimously determined that the offer is in the best interests of the company and its shareholders. The board recommends that shareholders tender to the offer,' said a Corriente press release.

CRCC, listed in Shanghai and Hong Kong, and Tongling Nonferrous, the second-largest mainland copper cathode producer, will acquire Corriente through joint venture CRCC-Tongguan Investment.

Corriente chief executive Ken Shannon said: 'We are pleased to have reached an agreement with CRCC-Tongguan, which is committed to bringing their vision of responsible mining to Ecuador. The copper projects will require large capital investment by CRCC-Tongguan.'

In November, Ecuadorian President Rafael Correa signed measures offering favourable terms to foreign mining companies. The law allows a mining company to hold an unlimited number of mining concessions in the country.