MCC proposes major disposals to streamline operations, refocus on core businesses

Metallurgical Corporation of China (MCC) announced a substantial disposal and connected transaction totaling RMB60,676.3224 million. The company intends to sell its entire equity interest in MCC Real Estate and assign related debts to Minmetals Land Holdings for RMB31,236.5898 million. Additionally, MCC will divest its entire equity interests in Non-ferrous Engineering, MCC Tongsin Resources, MCC Ramu, and a 67.02% interest in MCC-JJJ Mining to China Minmetals. China Huaye will also sell its interest in MCC Duddar, for RMB29,439.7326 million.

These disposals are expected to result in an estimated loss of RMB2,519 million for the group, based on a hypothetical completion date of 30 June 2025. Approximately 75% of the net proceeds, estimated at RMB60,213 million, will be reinvested to strengthen MCC's core metallurgical construction business and develop new industrialization and urbanization initiatives. The remaining 25% is allocated to working capital and debt reduction.

The transactions are subject to shareholder approval, with China Minmetals and its associates abstaining from voting due to their connected person status. The company also proposes to reallocate remaining A-share and H-share proceeds, previously designated for the Aynak Copper Mine Project, to replenish working capital.