Tongling Nonferrous acquires full ownership of copper JV
Shanghai. December 23. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Tongling Nonferrous Metals Group Co. Ltd. announced Dec. 22 it has gained sole-ownership of Tongling Jinvi Copper Corp. (Jinvi Copper), its joint venture (JV) with Canada's Viceroy Capital Corp. (Viceroy), through the acquisition of a 25 percent stake from Viceroy for a total consideration of $10.65 million.
The JV was established in 2003, but Viceroy has been unable to fulfill its commitment to contribute $13.75 million for registered capital, falling short by $6.65 million. Tongling Nonferrous purchased Viceroy's stake for $4 million and inherited this obligation.
Jinvi Copper is primarily involved in copper cathode processing. Its main product is copper strip, for which it has an annual production capacity of 60,000 tons. In 2009, the company generated net losses of RMB 75 million ($11.28 million).
-KY