October 16, 2008

Fosun buys stakes in Hainan Mining United

It is reported that China's Fosun Group will take 60% stake in the CNY 1.5 million Hainan Mining United Company through two subsidiaries.

Fosun in a statement to the Hong Kong stock exchange said that the venture will receive CNY 900 million from Fosun, while Hainan Iron & Steel Company which owns the remaining 40% stake will contribute its share of capital in forms of land use, building and mining rights and mining and manufacturing equipment.

Fosun has pledged to transform Hainan Steel into an integrated steel maker, focusing on mining in China's Hainan Province and to reduce the environmental impact through a restructuring project. It also initiated talks to purchase part of Hainan Steel in 2005 with the aim of developing both the steel and real estate industries on the island province of Hainan.