On August 16, Yunnan Copper announced that the company had received the official approval from the China Securities Regulatory Commission. This good news is especially valuable for the company, which means that Yunnan Copper has increased its production capacity and market expansion. The industrial structure optimization and other aspects will shine, this time the project is significant, the company opened the 'Nuggets' model.
Double the company's production capacity
Yunnan Copper is one of the leading companies in China's copper industry. Copper resource reserves and electrolytic copper scale are among the top listed copper companies. One of its most important competitiveness is geographical advantage - Yunnan's copper resources reserves rank third in the country. It accounts for 11% of China's copper resource reserves. The company has a copper resource reserve of 2.045 million tons in Yunnan Province, mainly distributed in the subordinate Jinsha Mining, Yuxi Mining, Chuxiong Mining and Metallurgy, Diqing Mining. In addition, in the field of electrolytic copper, Yunnan Copper With the southwestern copper branch and Inner Mongolia Chifeng Yuntong two subsidiaries, the production capacity has reached 600,000 tons.
According to the announcement of the plan, the number of non-public offerings will not exceed 283,379,800 shares, and the total amount of funds raised will not exceed 4,089 million yuan. The total cost will be used to acquire 50.01% of Diqing Nonferrous Co., Ltd.; Base project; Suizhong colored 100,000 tons of crude copper / year, 300,000 tons of sulfuric acid / year improvement project and supplementary liquidity.
Diqing Nonferrous is one of the fundraising projects. The company plans to acquire 50.01% of its equity with 1.439 billion yuan of raised funds. Due to the current low self-sufficiency rate of the company, the company produced copper concentrate containing 56,000 copper in 2017. In the same period, the output of high-purity cathode copper was 630,000 tons, and the self-sufficiency rate was 8.80%. It could not meet the rising demand for refined copper in domestic and even international markets. The company urgently needs to improve its production capacity and production technology.
The Pulang Copper Mine owned by Diqing Nonferrous is one of the largest copper mines in China with proven reserves of more than one million tons. It is one of the largest copper mines in Yunnan Province. The current record of the Pulang Copper Mine is currently on record. The grade of copper metal is 1,437,600 tons, with an average grade of 0.51%. In addition, it has an average grade of 0.24% of low grade copper metal of 1,367,100 tons. After the fundraising project is completed, the production scale of the Prang copper mine will reach 12.5 million. Tonne/year, calculated according to the average grade of 0.51%, the annual output of metallic copper is about 60,000 tons, and the amount of equity metal is around 30,000 tons. According to the Diqing Nonferrous Evaluation Report, 2017 to 2020, Diqing Nonferrous Forecasting Net The total profit will reach 770 million yuan.
It seems that after the acquisition of Yunnan Diqing non-ferrous metals, the copper concentrate of the company's self-produced copper concentrate will reach 12,250 tons, the self-sufficiency rate is 19.44%, and the production capacity will double, which is higher than the 15.25% of the same industry in Jiangxi Copper and Tongling. 3.65%. This will not only help improve the company's profit level, enhance profitability, and enhance the competitiveness of the industry; it will also help to increase the company's market share in the domestic copper industry and reduce the gap between China's copper supply and sales.
Targeting overseas markets
As early as June 30 this year, Chinalco Southeast Copper Co., Ltd. (hereinafter referred to as 'Southeast Copper Industry') Ningde 400,000 tons copper smelting base project ignition test activity was successfully held. This marks Yunnan Copper in the eastern coastal market and overseas The market layout started with a gun.
According to the "Securities Daily" reporter learned that Southeast Copper was incorporated on December 31, 2015, with a registered capital of 1.96 billion yuan, which is 60% and 40% by Yunnan Copper and Fujian Investment and Development Group Co., Ltd. The joint venture company jointly established by the proportion. The southeast copper mine is another target of the fundraising project. Yunnan Copper intends to invest 2 billion yuan in the southeast copper copper smelting base project.
The announcement shows that the 400,000-ton copper smelting base project to be built is located in the Metallurgical New Material Industrial Park of Lingang Industrial Zone, Ningde (Tsuen Wan), Fujian Province, adjacent to the 8#, 9# berth of the Sanwanao Port Area Liwan Operation Area. The area is more than 1,300 mu. The project uses imported copper concentrate as raw material. The smelting process adopts the world's advanced mature, environmentally friendly, and scale-enhancing 'oxygen-enhanced cyclone smelting' technology. The designed scale is 400,000 tons of cathode copper per year. 1.46 million tons. The total investment of the project budget is more than 5 billion yuan. According to the preliminary design, after the project is completed and put into production, it can realize sales income of 16.6 billion yuan / year, total profit of 780 million yuan / year, and drive employment of more than 1,000 people. The main advantages of the industry to build the base here are: The site is only 30 kilometers away from the seaport, which greatly saves transportation costs.
Insiders pointed out that Yunnan Copper has a unique layout, with a small land area, high production efficiency, low investment in tons of copper, and is conducive to the company's commitment to 'One Belt, One Road' construction, implementing the 'going out' strategy, and other coastal countries. Achieve more in-depth trade. After the main economic and technical indicators of the base are put into production, they will lead internationally and domestically. The competitiveness of Yunnan Copper will be strengthened as a whole.
In addition, with the implementation of the 100,000 tons of crude copper/year and 300,000 tons of sulfuric acid/year improvement project in Suizhong, and the improvement of the company's working capital, Yunnan Copper Copper Smelting Business and Technology will be further improved. Upon completion, the company will perfect the copper industry chain integrating mining, selection, smelting and deep processing, laying a solid foundation for the rapid development of the company's copper related business.