MCC divests non-core assets in $60.7bn strategic transformation

MCC announced plans to sell 100% equity in MCC Real Estate and related creditor’s rights, 100% equity in China Nonferrous Engineering and Research Institute (ENFI), MCC Ramu Nickel Cobalt Management (MCC Ramu), and 67.02% equity in MCC Jinsheng Mining Development (MCC Jinsheng) to Minmetals Properties Holdings and China Minmetals, respectively. The total transaction value is CNY 60,676,322,400. Additionally, China Huaye, a subsidiary of MCC, will sell its 100% equity in China Huaye Duddar Mining to China Minmetals or its designated entity. These divestitures aim to streamline MCC’s business structure, focus on core operations, and enhance competitiveness and profitability.

The transaction includes the sale of MCC Real Estate’s 100% equity and related creditor’s rights for CNY 31,236,589,800. The remaining assets, including ENFI, MCC Ramu, MCC Jinsheng, and China Huaye Duddar Mining, will be sold for a combined CNY 29,439,732,600. The proceeds will primarily be used to strengthen MCC’s core metallurgical construction business, advance new industrialization and urbanization initiatives, and develop engineering services, new materials, and high-end equipment.

Furthermore, MCC proposes to change the use of remaining A-share and H-share raised funds. The unused A-share funds of CNY 960,130,000, designated for the Aynak Copper Mine Project, will be permanently allocated to supplement working capital. Similarly, the idle H-share raised funds of HK$ 2,275,000,000 from the same project will also be used to permanently supplement working capital. These changes follow the divestment of MCC Ramu and the Aynak Copper Mine Project's implementing entity from MCC's consolidated financial statements.