Jinchuan eyes Africa and beyond

Asia's top nickel producer, state-backed Jinchuan Group, plans to list its technology unit on the A-share market as it expands overseas this year.

Last November, Jinchuan Group paid HK$467 million for Hong Kong-listed Macau Investment Holdings to provide a vehicle for its overseas growth. It officially renamed the company Jinchuan Group International Resources yesterday, with the Hong Kong stock code 2362 unchanged.

'We hope Jinchuan Group International will become a platform for undertaking overseas operations and fundraising in the future,' said Yang Zhiqiang, president of Jinchuan Group. The parent company owns 61.1 per cent of the new entity.

Jinchuan Group also set up a joint-venture with the China-Africa Development Fund to step up exploration of mining resources in Africa. The fund is backed by the China Development Bank.

'The investment environment in Africa has been very good in recent years,' said Yang, who added that the group's overseas resources operations accounted for just 4 per cent of the business.

Jinchuan Group International will shift its core business to copper, nickel and cobalt production. New management was put in place when the company was taken over.

Gao Tianpeng, general manager of Jinchuan Group's asset operation department, said plans to sell off the old businesses of Macau Investment - property and cosmetics - were being discussed with the Hong Kong subsidiary. He said Jinchuan Group International might plan to raise capital in the future.