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Shares of Chengtun Mining Group rose following news that the company plans to invest $300 million to secure an indirect 30% stake in a copper-cobalt mining project located in the Democratic Republic of the Congo.
As of 10:45 a.m. in Shanghai, the company’s shares were up 6.7%, trading at CNY 14.42 (approximately USD 2.11). Chengtun’s wholly owned subsidiary, Preeminence Holdings, intends to acquire a 50% interest in Nkoyi Leopard Mining and Investment, a branch of Abu Dhabi-based Novel Mining and Services, for $300 million. This acquisition will give the company an indirect ownership stake in Nkoyi’s copper-cobalt mine in the DRC.
The mine is situated in the core of the Central African Copper Belt, with an area exceeding 10.9 square kilometers and mining rights valid through January 2040, according to the company. Drilling data indicates that the copper and cobalt grades at the site are approximately 1.66% and 0.67%, respectively. The copper reserves are projected to surpass the standards set for large-scale copper operations in China.
Following the completion of the deal, the project is expected to undergo an 18-month construction phase, with another two years required to reach full production capacity. Costs related to mining and construction will be shared proportionally based on ownership stakes between Chengtun and Nkoyi.
Nkoyi, founded in October 2024, has yet to commence operations. Once operational, it will be classified as an associate, though it will not be consolidated in Chengtun’s financial results.
This move expands Chengtun’s overseas resource portfolio. In February, the company finalized the acquisition of a 100% stake in Canada’s Loncor Resources for approximately CAD 261 million (about USD 188.6 million), adding gold mining assets to its holdings.
The Chinese mining industry is witnessing increased consolidation. In March, China Minmetals revealed plans to merge Minmetals Mining Holdings and Minmetals Luzhong Mining through asset swaps and share issuance. Additionally, Yunnan Copper acquired a 40% stake in Liangshan Mining for CNY 2.3 billion (roughly USD 336.7 million), financing part of the deal through a share placement.
Earlier this year, CMOC Group purchased three gold assets from Canada’s Equinox Gold— the Aurizona Mine, RDM Mine, and Bahia Complex— collectively containing over five million ounces of gold resources.
As competition shifts from greenfield projects to existing asset acquisitions, industry leaders will increasingly rely on capital deployment and technological expertise, observed Bai Wenji, vice chairman of China Enterprise Capital Union. He suggested that the era of large-scale mining consolidation has only just begun.
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