04 JUNE 2014AlCircle.com
China Hongqiao will buy African Bauxite Company for about $120 million
Edited by : AL CIRCLE
1 min read
China Hongqiao Group Ltd, the largest non-state producer of aluminium of the nation, has agreed to buy an African company developing bauxite deposits for approximately $120 million. Winning Logistics (Africa) Co. and Hongqiao signed an agreement to buy a not so popular company developing a mine in Guinea, said Shandong-based Hongqiao. The target company is capable of developing and producing bauxite for 25 years from their deposit with a total resource of 2.2 bn metric tons.
The proposed acquisition took place as Hongqiao was looking for bauxite supplies after the Indonesian mineral export ban. Hongqiao is one of China’s lowest-cost smelters and is putting more effort to increase output after competitors including Aluminum Corp. of China Ltd. have cut down their production. The company also plans to boost the production of aluminium by 30% to about 3 million tons this year. Hongqiao will hold about 90% of the shares of target company and rest 10% will be owned by Winning after the deal gets over.
The proposed acquisition took place as Hongqiao was looking for bauxite supplies after the Indonesian mineral export ban. Hongqiao is one of China’s lowest-cost smelters and is putting more effort to increase output after competitors including Aluminum Corp. of China Ltd. have cut down their production. The company also plans to boost the production of aluminium by 30% to about 3 million tons this year. Hongqiao will hold about 90% of the shares of target company and rest 10% will be owned by Winning after the deal gets over.
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