October 07, 2008

Minmetals plans expanded logistics arm

Reuters cited Mr Zhou Zhongshu president of Minmetals Corp as saying that China's state owned Minmetals Corp plans to consolidate its logistics business into an independent subsidiary and boost the unit's annual capacity.

Mr Zhou also proposed that China set up a national mining development fund for domestic and overseas projects, under the initiative of the country's sovereign wealth fund which manages USD 200 billion.

Mr Zhou said "We suggest that the China Investment Corp take the lead, in cooperation with major domestic metals and minerals enterprises to develop domestic and overseas mineral resources. He said Minmetals, parent of Hong Kong listed Minmetals Resources Ltd and Shanghai listed Minmetals Development is studying plans for a listing of the whole group, although he gave no details about a timeframe or potential size of the offering.”

Mr Zhou said the company aims to acquire domestic city commercial banks and trust companies, although he mentioned no specific targets. He also expected that the company's Indian iron ore pellet project would start production next year.

Minmetals Corp and pipe manufacturer Xinxing Ductile Iron Pipes Group formed an iron and steel making venture in India late last month with a total investment of USD 72 million for the initial phrase, the first major Chinese investment in that country's steel industry.