11 Oct 2010 08:18

Zhejiang Hailiang to increase stake in Henghao Mining

Shanghai. October 11. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Zhejiang Hailiang Co. Ltd. announced plans on Oct. 8 to deploy RMB 72 million ($10.79 million) to buy 16 million new shares in Honghe Henghao Mining Co. Ltd. at RMB 4.5 ($0.67) per share. The purchase will increase Zhejiang Hailiang's stake in the mining company to 11.49 percent, or 40 million shares. Previously, Zhejiang Hailiang bought 24 million shares in Henghao Mining on May 25 at a total cost of RMB 108 million ($16.18 million).

Based in Yunnan Province, Henghao Mining focuses primarily on the development of nickel resources with an annual production capacity of 6,000 tons. Sales revenue over the first eight months of this year was RMB 580 million ($86.91 million); net profit was RMB 55.98 million ($8.26 million).

- KY