Tibet Mineral Development Teams up with Jinchuan Group to Develop Nimu Copper

Tibet Mineral Development decided to sign a cooperation framework agreement with Jinchuan Group Co., Ltd., to assign a 25%stake in Nimu Copper Development Co., Ltd.to Jinchuan Group or its subsidiary, and jointly develop Nimu Copper.

According to an announcement, Tibet Mineral Development decided to introduce Jinchuan Group as its strategic partner, becoming the second largest shareholder of Nimu Copper.When the cooperation succeeds, Nimu Copper will introduce Jinchuan Group’s full-fledged management experience, mine exploration and mining technologies to develop oxide ore and sulfide ore resources in Tinggong of Nimu.With the completion of the project, Tibet Mineral Development’s 5,000-ton electrolytic copper project and sulfide ore development will become more scientific and coordinated.

It is learned that in December 2009 Tibet Mineral Development decided to provide 50.81 million yuan for its majority-owned subsidiary Nimu Copper, used for geographical survey in Tinggong Copper Mine of Nimu. So far, it has been completed by and large. As of the end of 2011, Tinggong had 1,379,300 tons of proved reserves of copper. In 2010, Tibet Mineral Development increased an investment of 580 million yuan in Nimu Copper, taking up 99.67% in Nimu Copper’s total equity.

Under the agreement, Jinchuan Group will recommend a management team to take charge of Nimu Copper’s daily production, operation and management, Tibet Mineral Development will recommend finance managers, and Jinchuan Group or its subsidiary will sell Nimu Copper’s all copper concentrate in a marketized manner.

Moreover, Tibet Mineral Development and Jinchuan Group will jointly conduct exploration and prospecting in Tibet, and develop copper, lithium and other minerals.