Aluminum Corporation of China inks a framework agreement with Qinghai government to jointly exploit 2 mines on November 17th 2010. The total investment by Chinalco will reach CNY 1.6 billion.

The mentioned 2 mines include an iron ore mine and a polymetallic ore mine. In line with the agreement, Chinalco will set up JV with Nonferrous Geology and Minerals Prospecting and Exploration Bureau of Qinghai Province during the exploitation of the Galinge iron ore mine. The investor will hold 80% stakes of the JV while the bureau will take the rest 20% stakes. The investment in iron ore mining is expected to reach CNY 1.5 billion.

Chinalco will hold 70% stakes of another JV in the polymetallic ore mining and the rest 30% will belongs to local Nonferrous Geology and Minerals Prospecting and Exploration Bureau. This substantial shareholder will pour CNY 900 million into exploration of Kangdenonshejin polymetallic ore mine.

Galinge iron ore mine is located at the metallogenic belt to the west of Golmud City, Qinghai Province. Its total reserve will be more than 170 million tonnes with average grade over 40%.

On this November 7, Qinghai signed a strategic alliance agreement with Shandong Gold Mining Group. The agreement strengthened the company’s preferential right in mining activities at a local king-size goldfield. The goldfield has nearly 40 tonnes of controllable gold reserve.

(Sourced from www.Mysteel.net)
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