MCC repurposes Afghan mine funds for working capital

Metallurgical Corporation of China (MCC) is set to redirect 96.013 million yuan in uninvested funds, including interest accrued up to June 30, 2025, from its Afghan Aynak Copper Mine project. This capital will now permanently supplement the company's working capital.

The decision follows the project's prolonged delay and the company's plan to divest its entire 100% equity in China Metallurgical Copper and Zinc Co., Ltd. (MCC Copper and Zinc) to its controlling shareholder, China Minmetals Corporation. This divestment will remove MCC Copper and Zinc and its Aynak Copper Mine project from MCC's consolidated financial statements.

The change in use of funds, approved by the board of directors, aims to improve capital utilization, optimize the financial structure, and enhance the company's operational capabilities. The company maintains that this strategic shift will not negatively impact its production and operations or harm shareholder interests. The proposal is awaiting approval from the shareholders' meeting.

Citic Securities, acting as MCC's sponsor, has reviewed the proposed change and finds it consistent with relevant laws, regulations, and the company's articles of association.