Monday, February 8, 2010

Sichuan To Sell Stake In Hui-Dong Lead and Zinc Mine

China’s Sichuan Province is reportedly offering to sell an 80% stake in the Hui-Dong Lead & Zinc Mine for a lump sum of RMB 2.04 billion to any state-owned or state-controlled enterprise with a registered capital exceeding RMB 1 billion and net assets exceeding RMB 2 billion.

Prospective buyers must not have gone into debt at any time over the past three years.

Local government sources suggested that the Western Mining Company Ltd will probably buy the mine. Western signed an agreement last year with the local government to develop a lead-zinc ore mine at Huidong.

The Hui-Dong Lead & Zinc Mine was established in 1958 and had 11.56 million tons of ore as of Jan. 30, 2009, including 1.14 million tons of zinc and 88,000 tons of lead.

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