CITIC Pacific to invest RMB 15 bln in iron ore mining

Published: 27 May 2009 23:15:15 PST

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May. 28, 2009 (China Knowledge) - CITIC Pacific Ltd<267>, the Hong Kong-listed arm of China's biggest state-owned investment company CITIC Group, will invest RMB 15 billion in iron ore mining business, said CITIC Pacific Chairman Chang Zhenming, sources reported.

Chang explained that the company will stick to its three core businesses, including iron ore, special steel and property development.

As to the funds needed by the investments, CITIC Pacific has sufficient capital and performed well in the first quarter of 2009, according to Chang.

Last month, the company revealed plans to sell a 20% stake in a power plant in Inner Mongolia at a price of RMB 1.98 billion as part of its efforts to divest non-core businesses.

CITIC Pacific has finished the restructuring of all the foreign-exchange contracts after losing around HK$12.66 billion in forex trading last year.

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