China Minmetals
Encyclopedia
China Minmetals Corporation is a Chinese
metals and mineral
trading
company. It is a state-controlled corporation
existing under the laws of the People's Republic of China
, is a diversified
metals and mining company based in Beijing
, China
. China Minmetals is engaged in the production and trading of metals and minerals, including copper
, aluminum, tungsten
, tin
, antimony
, lead
, zinc
and nickel
.
It is one of the largest metals and minerals trading companies in the world and the largest iron and steel trader in China. The company handles more than 12 million tons of steel products annually. It also trades iron, coke, coal, copper, zinc, and lead. In addition to the trade of metals, China Minmetals also trades in electrical products and operates subsidiaries that focus on real estate
development, marine shipping, mining
, and other investment
activities.
In the United States, the company operates as Minmetals Inc, its North American headquarters located in Weehawken, NJ.
Minmetals, parent of Hong Kong-listed Minmetals Resources Ltd (1208.HK) and Shanghai-listed Minmetals Development
(600058.SS), is focusing its overseas expansion on Latin America and Africa to secure natural resources to supply a fast-growing Chinese economy
.
Minmetals was ranked No. 331 among the Fortune 500
companies in 2009 , (see List of the largest companies of the People's Republic of China).
In 2009, China Minmetals had revenue
of US$26.67 billion. The turnover and profits of China Minmetals reached US$21.8 billion and RMB 6.8 billion in 2007. Its resource reserves include 604 million tons of iron ore, 250 million tons of coke and 410,000 tons of tungsten. It can supply annually 11 million tons of rolled steel, 4.1 million tons of coal, 800,000 tons of coke, 145,000 tons of electrolytic copper and 700,000 tons of alumina.
In the field of ferrous metal, China Minmetals remained the top steel trader of the nation and sped up the development of its upstream industrial chain. In the iron exploration in Anhui
province, it has controlled 100 million tons of magnetite and 30 million tons of pyrite.
In the field of nonferrous metal, China Minmetals cooperated with Jiangxi Copper Corp to purchase 100% stake of Northern Peru Copper Corp (Canada), and set up joint venture with the U.S. Century Aluminum Corp in Jamaica to acquire the mining right for 150 million tons of bauxite
. Its alumina project in Guangxi
Province has annual output of 400,000 tons, which is the country's largest alumina project in both the scale and the investment.
(MMG) was formed after its parent company, China Minmetals, bought almost all mining assets of OZ Minerals
in June 2009. The deal in which the Golden Grove
, Sepon, Century, Rosebery, Avebury, Dugald River, High Lake and Izok Lake Mines as well as some exploration assets were sold for US$1.354 billion by OZ Minerals to China Minmetals, initially also including the Prominent Hill Mine, but was blocked by the Australian Government
, citing national security concerns. Wayne Swan
, Treasurer of Australia
, stated that Prominent Hill could not be included in the sale as it was within sensitive military area and the sale went only ahead after Prominet Hill was excluded.
Ltd. for HK$10 billion ($1.3 billion).
Anvil's main property is the Kinsevere
mine, being upgraded in 2011 to produce about 60,000 tons of copper annually. Anvil is studying the potential for further increasing the rate of production.
, a Canadian mining company. It was the largest unsolicited takeover attempt by a Chinese mining company to date. Equinox Minerals
rejected the takeover offer later accepting a 16% higher bid by Barrick Gold
.
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
metals and mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
trading
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
company. It is a state-controlled corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
existing under the laws of the People's Republic of China
Law of the People's Republic of China
Law of the People's Republic of China is the legal regime of the People's Republic of China, with the separate legal traditions and systems of Mainland China, Hong Kong, and Macau....
, is a diversified
Diversified
Diversified technique is the most commonly used adjustment technique by chiropractors. Like many chiropractic and osteopathic manipulative techniques, Diversified is characterized by a high-velocity, low-amplitude thrust...
metals and mining company based in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. China Minmetals is engaged in the production and trading of metals and minerals, including copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, aluminum, tungsten
Tungsten
Tungsten , also known as wolfram , is a chemical element with the chemical symbol W and atomic number 74.A hard, rare metal under standard conditions when uncombined, tungsten is found naturally on Earth only in chemical compounds. It was identified as a new element in 1781, and first isolated as...
, tin
Tin
Tin is a chemical element with the symbol Sn and atomic number 50. It is a main group metal in group 14 of the periodic table. Tin shows chemical similarity to both neighboring group 14 elements, germanium and lead and has two possible oxidation states, +2 and the slightly more stable +4...
, antimony
Antimony
Antimony is a toxic chemical element with the symbol Sb and an atomic number of 51. A lustrous grey metalloid, it is found in nature mainly as the sulfide mineral stibnite...
, lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and nickel
Nickel
Nickel is a chemical element with the chemical symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel belongs to the transition metals and is hard and ductile...
.
It is one of the largest metals and minerals trading companies in the world and the largest iron and steel trader in China. The company handles more than 12 million tons of steel products annually. It also trades iron, coke, coal, copper, zinc, and lead. In addition to the trade of metals, China Minmetals also trades in electrical products and operates subsidiaries that focus on real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
development, marine shipping, mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
, and other investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
activities.
In the United States, the company operates as Minmetals Inc, its North American headquarters located in Weehawken, NJ.
History
Minmetals' sales network is worldwide. It operates more than 100 offices in China and more than 40 companies abroad. China Minmetals Corporation was founded in 1950.Minmetals, parent of Hong Kong-listed Minmetals Resources Ltd (1208.HK) and Shanghai-listed Minmetals Development
Minmetals Development
Minmetals Development Co., Ltd. is a Shanghai-listed Chinese company principally engaged in the domestic and international trading of minerals. Headquartered in Beijing, the People's Republic of China, the Company mainly offers steel products, steel billets, iron ore, coal and coke.The Company...
(600058.SS), is focusing its overseas expansion on Latin America and Africa to secure natural resources to supply a fast-growing Chinese economy
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
.
Minmetals was ranked No. 331 among the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
companies in 2009 , (see List of the largest companies of the People's Republic of China).
In 2009, China Minmetals had revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
of US$26.67 billion. The turnover and profits of China Minmetals reached US$21.8 billion and RMB 6.8 billion in 2007. Its resource reserves include 604 million tons of iron ore, 250 million tons of coke and 410,000 tons of tungsten. It can supply annually 11 million tons of rolled steel, 4.1 million tons of coal, 800,000 tons of coke, 145,000 tons of electrolytic copper and 700,000 tons of alumina.
In the field of ferrous metal, China Minmetals remained the top steel trader of the nation and sped up the development of its upstream industrial chain. In the iron exploration in Anhui
Anhui
Anhui is a province in the People's Republic of China. Located in eastern China across the basins of the Yangtze River and the Huai River, it borders Jiangsu to the east, Zhejiang to the southeast, Jiangxi to the south, Hubei to the southwest, Henan to the northwest, and Shandong for a tiny...
province, it has controlled 100 million tons of magnetite and 30 million tons of pyrite.
In the field of nonferrous metal, China Minmetals cooperated with Jiangxi Copper Corp to purchase 100% stake of Northern Peru Copper Corp (Canada), and set up joint venture with the U.S. Century Aluminum Corp in Jamaica to acquire the mining right for 150 million tons of bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...
. Its alumina project in Guangxi
Guangxi
Guangxi, formerly romanized Kwangsi, is a province of southern China along its border with Vietnam. In 1958, it became the Guangxi Zhuang Autonomous Region of the People's Republic of China, a region with special privileges created specifically for the Zhuang people.Guangxi's location, in...
Province has annual output of 400,000 tons, which is the country's largest alumina project in both the scale and the investment.
OZ Minerals acquisition
Minerals and Metals GroupMinerals and Metals Group
Minerals and Metals Group is an Australian-based mining company and wholly owned subsidiary of China Minmetals. It was formed in 2009 with the purchase of most of OZ Minerals' assets by China Minmetals; these collective assets became MMG...
(MMG) was formed after its parent company, China Minmetals, bought almost all mining assets of OZ Minerals
OZ Minerals
OZ Minerals is an Australian mining company, formed from the merger of Oxiana Limited and Zinifex in 2008.In 2009, Chinese state owned China Minmetals proposed a purchase of the heavily indebted company. The Chinese proposal was one of three high profile moves by Chinese firms to acquire stakes in...
in June 2009. The deal in which the Golden Grove
Golden Grove Mine
The Golden Grove Mine is a copper, lead, silver, zinc and gold mine located 52 km south-south-east of Yalgoo, Western Australia.It is operated by Minerals and Metals Group, which was formed after its parent company, China Minmetals, bought the mine from OZ Minerals in June 2009...
, Sepon, Century, Rosebery, Avebury, Dugald River, High Lake and Izok Lake Mines as well as some exploration assets were sold for US$1.354 billion by OZ Minerals to China Minmetals, initially also including the Prominent Hill Mine, but was blocked by the Australian Government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
, citing national security concerns. Wayne Swan
Wayne Swan
Wayne Maxwell Swan is the Deputy Prime Minister of Australia and an Australian politician. He has been an Australian Labor Party member of the Australian House of Representatives from 1993 to 1996, and then re elected in 1998 till today , representing the Division of Lilley, QLD...
, Treasurer of Australia
Treasurer of Australia
The Treasurer of Australia is the minister in the Government of Australia responsible for government expenditure and revenue raising. He is the head of the Department of the Treasury. The Treasurer plays a key role in the economic policy of the government...
, stated that Prominent Hill could not be included in the sale as it was within sensitive military area and the sale went only ahead after Prominet Hill was excluded.
Anvil Mining Ltd. acquisition
Minmetals Resources Ltd., a subsidiary of China Minmetals Group, agreed to buy Anvil MiningAnvil Mining
Anvil Mining is a copper producer that has been operating in the Democratic Republic of the Congo since 2002.The company headquarters are based in Montreal, Canada.Anvil is listed on the Toronto Stock Exchange and the Australian Stock Exchange....
Ltd. for HK$10 billion ($1.3 billion).
Anvil's main property is the Kinsevere
Kinsevere
Kinsevere is an open pit mine and Heavy Media Separation plant with an electric arc furnace operated by Anvil Mining.It is located north of Lubumbashi, Katanga Province, Democratic Republic of Congo.Kinsevere is in the Kipushi Territory in Katanga province....
mine, being upgraded in 2011 to produce about 60,000 tons of copper annually. Anvil is studying the potential for further increasing the rate of production.
Equinox Bid
In 2011, Minmetals launched a $6.5 billion takeover bid for Equinox MineralsEquinox Minerals
Equinox Minerals is a mining and exploration company with corporate offices in Perth, Australia and Toronto, Canada. It has operations in Peru, Australia and Zambia but most of its current activity is concentrated in Zambia where through subsidiary the Lumwana Mining Company, it operates mines in...
, a Canadian mining company. It was the largest unsolicited takeover attempt by a Chinese mining company to date. Equinox Minerals
Equinox Minerals
Equinox Minerals is a mining and exploration company with corporate offices in Perth, Australia and Toronto, Canada. It has operations in Peru, Australia and Zambia but most of its current activity is concentrated in Zambia where through subsidiary the Lumwana Mining Company, it operates mines in...
rejected the takeover offer later accepting a 16% higher bid by Barrick Gold
Barrick Gold
Barrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
.