China: Tongling sets out to control more assets overseas

Tongling Nonferrous net profit down 38.2 pct year-on-year in 2008

Shenzhen-listed Tongling Nonferrous Metals Group Co. Ltd., China's largest copper smelter by production, reported on Feb. 28 that its net profit in 2008 dropped by 38.2 percent year-on-year to RMB 637.13 million ($93.16 million).

According to the report, the company's operating revenue increased by just 0.82 percent on an annual basis to RMB 37.34 billion ($5.46 billion), due to falling copper product prices caused by the outbreak of the global economic downturn last year.

In 2008, Tongling Nonferrous' refined copper production grew by 3.95 percent year-on-year to 648,500 tons, less than its original plan of 712,000 tons. The company's annual copper smelting capacity reached more than 800,000 tons by the end of 2008.

The company plans to produce 800,000 tons of refined copper, 43,920 tons of copper in concentrate form, 85,900 tons worth of copper products, 560,000 tons of iron ore concentrate, 1.76 million tons of sulfuric acid, 9.4 tons of gold, and 310 tons of silver in 2009.

Tongling Nonferrous said that in 2009, it will try to control more overseas mining assets, with encouragement from the central government, and gain a greater market share in overseas countries, as the government has raised value-added tax rebates on exports of certain high-tech copper products.

Tongling Nonferrous' shares stood at RMB 9.12 ($1.33) at 2:30 p.m. Beijing time on March 2, down 0.22 percent from the previous trading day.

Source: Interfax China, Metals and Mining 6 March 2009