CHINA’S largest nickel producer, Jinchuan, has established a presence in Perth and is on the look out for more nickel, copper and other minerals.
CHINA’S largest nickel producer, Jinchuan, has established a presence in Perth and is on the look out for more nickel, copper and other minerals.
Jinchuan’s chief represent-ative in Australia, Yimin Zhang, who arrived in Perth from Sydney earlier this month, told WA Business News that he had come to Western Australia to be closer to the action.
“Jinchuan feels WA is closer to the nickel and mining industry,” he said.
Formerly Jinchuan’s chief representative in Beijing, Mr Zhang had been in Sydney for about a year where Jinchuan had established Sino Nickel Pty Ltd.
However, he has now shifted to WA where Jinchuan established Jinchuan Jitia Nickel Pty Ltd.
Mr Zhang said was keen to establish relationships with mining companies in Perth with nickel, copper or precious metal projects that would allow Jinchuan to locate and develop resources faster.
He said he was not in a position to comment on whether Jinchuan would look at an acquisition.
“Jinchuan has extra smelting and refining opportunity and we are looking for more nickel, copper or other minerals . . . in concentrate or high grade matte,” Mr Zhang said.
China’s huge industrial development is driving massive amounts of construction throughout the country, dramat-ically increasing domestic consumption of steel and other construction materials.
Jinchuan produces about 70,000 tonnes of nickel a year but wants an annual production of about 120,000 tonnes.
It currently sells about 95 per cent of its nickel domestically and Mr Zhang said the company was confident Chinese demand would continue.
Jinchuan already has a number of agreements with Australian nickel miners including a $1 billion offtake agreement with WMC Resources.
Jinchuan also has offtake agreements with smaller WA miners such as Fox Resources and Sally Malay.
Mr Zhang said Jinchuan was keen to become involved in both ends of the chain to ensure security of supply, like it did with Sally Malay where it contributed a pivotal $5 million debt facility and a 10-year life of mine supply contract.
“Buying minerals is not like buying things from the shop, you need to have some involvement,” he said.
Sally Malay managing director Peter Harold said his company was looking to locate a third nickel or copper or even precious metal project that Jinchuan’s China plant could deal with.
