18 Nov 2010 10:55

Chinalco to develop mineral resources in Qinghai

Shanghai. November 18. INTERFAX-CHINA - China's largest aluminum smelter, the Aluminum Corporation of China (Chinalco), has signed a framework agreement with the Qinghai Provincial Bureau of Nonferrous Metal and Geological Exploration to jointly develop the Galinge iron mine and the Kangdenongshejin multi-metal mine in Qinghai Province, state media reported Nov. 18.

According to a China Securities Journal report, the Galinge mine is a large iron mine requiring a total investment of RMB 1.5 billion ($225.72 million). Chinalco will hold an estimated 80 percent stake in the Galinge mine joint venture (JV) with the exploration bureau.

The Kangdenongshejin multi-metal mine requires an investment of RMB 900 million ($135.43 million). For this project, Chinalco will establish another JV with the exploration bureau, in which it will hold an estimated 70 percent stake.

Director of the exploration bureau, Wu Tingxiang, was cited in the report as saying that Gelinge iron mine has over 170 million tons of iron ore resources of a grading of greater than 40 percent.