Sino-Platinum to sell nickel stake, focus on precious
Shanghai. November 17. INTERFAX-CHINA - Shanghai-listed Sino-Platinum Metals Co. Ltd., a precious metal products and nickel ore producer based in Yunnan Province, plans to sell 70 percent of its interest in Yuanjiang Nickel Co. Ltd. to its controlling shareholder, Yunan Tin Group Ltd., Sino-Platinum announced on Nov. 17.
Yunan Tin Group will pay RMB 99.99 million ($14.65 million) for the stake in Yuanjiang Nickel, which primarily engages in nickel mining, according to the announcement.
Sino-Platinum said that it is planning to get out of the nickel mining business and wants to focus on its precious metal business in order to make itself more competitive.
The price of nickel has been dropping since the second half of 2007, even as production costs have risen, according to the announcement. Yuanjiang Nickel reported a huge net loss in 2008, followed by a loss of RMB 11.35 million ($1.66 million) for the first five months of 2009.
The deal is still subject to approval from shareholders and the State-owned Assets Supervision and Administration Commission of Yunnan Province.
Sino-Platinum's share price closed at RMB 29.51 ($4.32) on Nov. 17 on the Shanghai Stock Exchange, down 1.47 percent from the previous trading day.