China Molybdenum looks for more overseas mining acquisitions

China Molybdenum, the mainland's biggest producer of the metal, is seeking more acquisitions after the success of its US$820 million purchase of a Rio Tinto Group copper mine in Australia.

"We'll prefer mining assets in developed countries or regions with stable political conditions," said Li Chaochun, the chairman of the company, which is based in Luoyang, Henan province. "We are bullish on copper over the long run. It is one of our investment priorities. We're also studying other metals."

Buying the Northparkes mine, its first overseas copper acquisition, helped the mainland producer diversify into precious and base metals, as it seeks to become a global mining company.

China Molybdenum, which started a team looking for overseas assets in 2008, last week reported a 66 per cent jump in first- half profit as Northparkes added to production.

"Diversification will help the company achieve stable growth by avoiding price risks on a single metal," said Wang Min, a rare-metal analyst with Beijing Antaike Information Development.

Shares in China Molybdenum have climbed 59 per cent this year, outstripping the 7.1 per cent increase in the benchmark Hang Seng Index. The stock closed 0.72 per cent lower at HK$5.48 yesterday.