Minmetals Development Co, a unit of China's biggest state-owned metals trader, plans to invest in a chrome and manganese mine in Africa, Vice Chairman Zhang Yuanrong said yesterday.
The Beijing-based company plans to complete the investment this month, Zhang said in an interview with Bloomberg News, without providing details. Chrome and manganese are used in the making of stainless steel.
Chinese metals companies have announced US$15.9 billion of investments this year to buy resources and mining companies to lock-in supplies. China's economy has grown at more than 10 percent a year since 2003, fueling demand for commodities.
Minmetals Development fell 1.95 yuan (28 US cents), or 6.9 percent, to 26.22 yuan in Shanghai yesterday. It has fallen 31 percent this year.
China, the world's largest producer of stainless steel, imports 90 percent of its chrome minerals. Samancor Chrome Ltd, the world's second-biggest ferrochrome producer, is demanding a 69 percent increase in second-quarter contract prices.
China Minmetals Corp, the parent of Minmetals Development, last year planned to boost chrome ore imports 67 percent and ferrochrome shipments by 43 percent.
(Shanghai Daily April 2, 2008)
