LONDON Maike Metals Group
and Jinchuan Group Co. Ltd. have established a framework
agreement for a metals trading joint venture.
The trading company, which
likely will be based in Shanghai, is expected to trade nickel
and 2 million tonnes of copper per year both inside and outside
The joint venture, capitalized
with 1 billion yuan ($160 million), will be an independently
operated, international trading company, and wont affect
Maikes current 1 million tonnes in annual copper trading,
Maike Metals chairman Jinbi He told AMM sister
publication Metal Bulletin Thursday.
"The senior executives of both
companies have reached a consensus to expand both
companies resources, presence and market share and status
in China," He said.
The registration of the company,
which hasnt yet been named, should be completed by
The new venture between
Jinchuan, which has the capacity to produce around 150,000
tonnes of nickel and 600,000 tonnes of copper annually, and
Maike will source nickel and copper from outside the
The ventures significant
ambitions in copper will be outstripped by those in the nickel
market, according to He. "Simultaneously, the joint venture
will have an even bigger impact on the nickel market," said He,
whose Xian-based metals group spans aluminum and copper
refining, physical base metals, steel and futures trading. The
company also plans to establish a commodities exchange.
There has been no decision yet
on how the companys ownership will be split.
"Currently, both parties are
concentrated on the initial preparations," He said. "In due
course, it will focus on business developments and investments
in international mining resources."
A version of this article was first
published by AMM sister publication Metal