China’s CATL, Huawei Eye 10% Mining Jinchuan Inter-Resources

Chinese Battery Manufacturer Contemporary Amplification Technology Limited (CAT) was spotted at the building in Ningde, Fujian Province, China on August 8, 2018. Photo taken August 8, 2018. REUTERS / Stringer

  • CATL offers a 9.9% HK $ 2 billion discount for Jinchuan Intel – Sources
  • China Cobalt Mining talks about issuing new shares
  • He says he has not been in contact with any of the parties since the beginning of August

Hong Kong, August 26 (Reuters) – Contemporary Amperex Technology Limited (CATL) (300750.SZ) and He Jiang Huawei Cobalt are each buying about 10% of shares in China’s Mining Jinchuan Group International Resources Co. (2362.HK). it is. Valued at $ 2 billion ($ 257 million), sources told Reuters on Thursday.

CATL, China’s largest battery manufacturer, has significantly increased its supply of raw materials such as cobalt this year.

Two sources familiar with the matter say that his offer to buy 9.9% of Ginchuan International is worth about $ 2 billion and will secure at least 3,000 tons of cobalt a year.

CATL has refused to buy such a share.

During his presentation, Jinchuan International said that he was in the first “free talks with third parties” about issuing new shares without naming the parties. He described the discussion as “premature” and said it had nothing to do with the issue since August 2.

The CATL discount represents about 40% of Ginchuan International’s average share price of $ 1.14 last month and is valued at around $ 20.2 billion.

According to sources, CATL wanted to buy about 20% and take twice as much cobalt, but this is the Hong Kong-based steel producer listed in Hong Kong as coal mines in the Democratic Republic of Congo. ).

According to sources, STAN.L is the main bank that advises on the agreement. The bank did not immediately respond to a request for comment.

One of the sources told Reuters that Huayo (603799 SS), one of the world’s largest cobalt producers, had previously held separate talks with Ginchuan International for 9.9%.

A Huawei spokesman said this was not the case.

Ginchuan International shares rose to 90.5% on Thursday to HK $ 2.00 ($ 0.2569), Bloomberg News reported that CATL was the first in talks to buy about 10% since March 2018.

The company produced 4,158 tons of cobalt from the Russian mines in the Democratic Republic of Congo last year. A.D. According to the two sources, it aims to expand its production to 13,000 tons a year by 2023, one of which is that CATL’s investment in the Democratic Republic of Congo will not be available until 2026.

In April, a CATL unit agreed to pay $ 137.5 million to participate in copper-cobalt mining in China Molybdenum Company (CMCO) (603993 SS).

CMC has not yet announced the production deadline for Kisanfu.

As low cobalt and cobalt-free batteries become more popular, “we see CATL’s further expansion into cobalt mining as a testament to Cobalt’s strong demand,” Diawa Capital Markets said in a statement.

($ 1 = 7,7861 Hong Kong Dollars)

Report by Julie Hu Hu in Hong Kong; Edited by Thomas Janovsky and Jason Nellie

Our Standards – Thomson Reuters Principles.


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