Nov. 9, 2009 (Xinhua News Agency) -- JNMC gives up bidding for BHP's nickel mine
BEIJING, Nov.9 (Xinhua) -- Jinchuan Group Ltd. (JNMC) will not participate in the second round of bidding for the Ravensthorpe nickel mine of BHP Billiton (OOTC:BHPLF) (NYSE:BHP) , the Australian mining company Metals X (OOTC:METSF) announced on Monday.
JNMC is the second largest shareholder of Metals X, holding a 14.8 percent stake in the latter. According to the announcement, JNMC considers Metals X's Wingellina nickel mine to be of more invest-worth than the Ravensthorpe mine.
Metals X has also appointed Zhang Sanlin, JNMC's vice general manger, to replace Wang Wei as Metals X's director. JNMC holds a membership position on Metals X's board.
JNMC, located in Jinchang city of northwestern China's Gansu province, is the country's largest nickel and cobalt production base. The company has an annual production capacity of 130,000 tons of nickel, 200,000 tons of copper, 6,000 tons of cobalt, 8,000 kilograms of platinum group metals, and 1,200,000 tons of chemical products.
Earlier, China Metallurgical Group Corporation, another state-owned enterprise of China, was reported as a participant in the bidding for the Ravensthorpe nickel mine, unconfirmed by the group.
China holds only 10 percent of the world's nickel reserves, while its consumption accounts for 30 percent of the world's total, according to Li Cheng, chairman of the Stainless Council under the China Special Steel Enterprise Association.
Li said that the country's nickel demand will further increase as the production of stainless steel grows, and appeals to the government to support enterprises to invest in overseas nickel and chrome mines.
