5 May 2010 10:07

Baosteel Resources to invest in Yunnan manganese miner

Shanghai. May 5. INTERFAX-CHINA - Baosteel Resources Co. Ltd., the subsidiary of one of China's largest steel mills, Baoshan Iron and Steel Group (Baosteel Group), will purchase a 12 percent stake in Yunnan Wenshan Dounan Manganese Industrial Co. Ltd.(Dounan Manganese), a manganese miner in Yunnan Province, state media reported on April 30.

Baosteel Resources will receive new shares from Dounan Manganese, becoming its second largest shareholder. Baosteel Resources will also cooperate with Dounan Manganese on exploration of overseas mining projects and sales of manganese products, according to a report from China Securities Journal. No other further details have been revealed.

State-owned Yunnan Metallurgical Group Co. Ltd. is the largest of Dounan Manganese's shareholders, with a 56.42 percent stake.

Dounan Manganese currently holds 14.17 million tons of manganese resources in Yunnan Province. It has an annual manganese ore and ferro-manganese production capacity of 250,000 tons and 100,000 tons respectively, and it is now preparing to list on one of the mainland China stock markets.