(Yicai) April 8 -- Chengtun Mining Group’s shares rose after the Chinese non-ferrous metals firm said it plans to indirectly acquire a 30 percent interest in a copper-cobalt project in the Democratic Republic of the Congo, furthering its push to secure critical mineral supplies overseas.

Chengtun [SHA: 600711] finished 7 percent higher at CNY14.47 (USD2.12) per share in Shanghai today.

Wholly owned subsidiary Preeminence Holdings will acquire a 50 percent stake in Nkoyi Leopard Mining and Investment, a unit of Abu Dhabi-based Novel Mining and Services, for USD300 million, thereby indirectly securing a 30 percent interest in Nkoyi's copper-cobalt mine in the DRC, Chengtun announced late yesterday.

Located at the heart of the Central African Copper Belt, the mine covers an area of more than 10.9 square kilometers, the Xiamen-based firm noted. The mining rights are valid until January 2040.

Based on drilling data, Chengtun estimates that the ore contains 1.66 percent copper and 0.67 percent cobalt. It said the copper reserves are expected to be well above the standard for large Chinese copper mines and that the project has significant upside for additional reserve growth.

The deal extends Chengtun's push into overseas assets. In February, it completed the acquisition of Canada's Loncor Resources for about CAD261 million (USD188.6 million), adding gold to its portfolio.

Once the deal is completed, Chengtun expects the DRC mine to undergo an 18-month construction period, followed by 24 months to achieve full production. Chengtun and Nkoyi will split the mining and construction costs based on their shareholding ratios.

Incorporated in October 2024, Nkoyi has not yet begun operations. It will become an associate of Chengtun but will not be included in the Chinese firm’s consolidated financial statements.

China’s mining sector is consolidating. In March, China Minmetals announced plans to absorb Minmetals Mining Holdings and Minmetals Luzhong Mining via asset swaps and share issuance. In the same month, Yunnan Copper said it bought a 40 percent stake in Liangshan Mining for CNY2.3 billion (USD336.7 million), with CNY1.5 billion raised through a share placement.

Earlier this year, CMOC Group completed the acquisition of three gold assets from Canada's Equinox Gold -- the Aurizona Mine, RDM Mine, and Bahia Complex -- with combined gold reserves of over five million ounces.

As resource acquisition shifts from greenfield development to competition over existing assets, capital execution and technological capabilities will define who leads the industry, Bai Wenji, vice chairman of the China Enterprise Capital Union, told China Securities Journal. An era of lsweeping consolidation in the industry may have only just begun, he noted.

Editor: Futura Costaglione