CITIC buy 49% stake in metal firm for RMB 3.26 bln

Nov. 26, 2008 (China Knowledge) - CITIC Group, the largest state-owned investment enterprise in China, along with its Hong Kong-listed subsidiary China Resources Holdings Ltd<1205>, has acquired a 49% stake in metals smelter Baiyin Nonferrous Metals from Gansu provincial government for RMB 3.26 billion, sources reported.

The acquisition increased the value of Baiyin's total assets to RMB 6.66 billion.

Reportedly, CITIC beat other large state-owned companies, including China Minmetals Corp and parent of Aluminum Corp of China (Chalco)<601600><2600><ACH>, and was shortlisted as a buyer in late July by the Gansu government, which still holds a controlling 51% stake in Baiyin.

Baiyin has annual smelting capacity of 80,000 tons of copper, 170,000 tones of zinc and 30,000 tons of lead. It has incorporated a joint venture with Chalco with 160,000 tons of aluminum smelting capacity, and operates three copper mines and two lead and zinc mines in the mainland, said the company on its website.