Yunnan Copper expands into rare metals with new joint venture

Yunnan Copper Co., Ltd. (Yunnan Copper) plans to establish a new limited liability company with China Aluminum Group Co., Ltd., Chihong Zinc & Germanium Co., Ltd., and Chalco Capital Holdings Co., Ltd. The new company will have a registered capital of RMB 1.5 billion, with Yunnan Copper contributing RMB 300 million in cash for a 20% stake. This strategic move aims to leverage the parties' resources to create a platform for the rare metal industry chain's extension, focusing on high-purity, compounded, and terminal products for rare metals like gallium, germanium, selenium, tellurium, antimony, bismuth, indium, and cadmium.

The joint venture seeks to address Yunnan Copper’s current challenges in rare metal purification and value enhancement by fostering a dedicated technical and market team. This partnership is expected to streamline operations, allowing Yunnan Copper to concentrate on its core strengths while the new entity develops downstream processing and product segments. The transaction is classified as a connected transaction due to the involvement of parties controlled by China Aluminum Group, Yunnan Copper’s ultimate controlling entity.

The board of directors approved the co-investment on August 27, 2025. This transaction is not expected to alter Yunnan Copper’s consolidated financial statements or negatively impact its operational or financial health. As of July 2025, Yunnan Copper's cumulative connected transactions with China Aluminum Group and its affiliates totaled RMB 33.783 billion.