16 Jun 2009 09:35

Jinchuan Group inks deal to develop mineral resources in Gansu

Shanghai. June 16. INTERFAX-CHINA - Jinchuan Group Ltd., Asia's largest nickel producer, has entered into a strategic partnership with the local government of Sunan county in Gansu Province for the exploration and development of its mineral resources, a company employee told Interfax on June 16.

"The mineral resources are mainly copper and other nonferrous metal resources," a Jinchuan Group employee, who asked to remain anonymous, said.

Sunan, located in the northwestern part of Gansu, is rich in mineral resources but has a fragmented mining industry, he said. "We are also negotiating with other county governments for possible cooperation on mineral resource exploration and development."

The employee added that Jinchuan Group is planning to reopen the Munali Nickel Mine in Zambia in July at the earliest.

The Munali Nickel Mine, owned by Albidon Ltd., suspended operation in March 2009 due to plummeting nickel prices. Jinchuan Group is Albidon's largest shareholder with an 18 percent stake. It plans to increase its shareholdings in Albidon.