CNMC to boost stake in Kazakhstan copper project to 70%

China Nonferrous Mining Corporation Limited (CNMC) announced it will acquire 64,706 SM Minerals shares, representing 55% of the issued share capital, for $89,000,000. This transaction, executed through a share purchase agreement with the original shareholders, will bring CNMC's total holding in SM Minerals to 70%. Currently, CNMC holds 15% of SM Minerals' issued share capital.

SM Minerals, incorporated in Kazakhstan, is primarily engaged in copper mining and enrichment, focusing on the Benkala project in Aktobe Province. The Benkala north mining area currently holds 384m tonnes of mineral resources, including 1.58m tonnes of copper at an average grade of 0.41%. The project anticipates an open-pit ore processing capacity of 14m tonnes per year, aiming for an annual output of approximately 45,000 tonnes of copper in concentrate.

Feasibility studies and preliminary design for Benkala north are projected for completion in 2027, with construction slated to begin the same year and production in 2029. This strategic acquisition enhances CNMC's footprint in Central Asia and supports future resource expansion. The transaction's terms were deemed fair and reasonable by the directors.