Zijin Mining and JDCMOLY further signed a "Letter of Intent for Cooperation" involving the transfer of 24% equity in Jinsuo Molybdenum and the establishment of a smelting company

According to the Zhitong Finance APP, Zijin Mining (02899) announced that on August 28, 2025, the company learned that the 84% equity stake in Anhui Jinsuo Molybdenum Co., Ltd. (hereinafter referred to as "Jinsuo Molybdenum") obtained through public delisting on October 21, 2022, has completed the industrial and commercial change registration and has officially been transferred to the company's name.

It is reported that Jinsuo Molybdenum holds 100% equity in the Shapinggou Molybdenum Mine located in Jinzhai County, Anhui Province. Since the delisting, the company has actively coordinated with relevant parties to promote the processing of licenses for the Shapinggou Molybdenum Mine and has obtained all necessary procedures required for project approval before delivery, including mining licenses, environmental impact assessment approvals, etc. After the completion of the delivery, the company will promote Jinsuo Molybdenum to quickly handle the remaining procedures such as project approval and safety facility design review, and prepare for the preliminary construction work.

The Shapinggou Molybdenum Mine is located in Jinzhai County, Anhui Province, with a total molybdenum metal resource of 2.1 million tons (including reserves), an average grade of 0.187%, and molybdenum metal reserves of 1.1 million tons, with an average grade of 0.2%. The mining rights for the project are valid until July 28, 2053, with underground mining methods and a beneficiation process of coarse crushing + semi-autogenous grinding + ball milling + flotation + concentrate thickening and filtering, designed to produce 10 million tons per year, with the product being molybdenum concentrate (containing a molybdenum grade of 57%). The project construction period is 4.5 years, and after reaching full production, the average annual molybdenum output is approximately 22,100 tons.

After the completion of this delivery, the company holds an 84% equity stake in Jinsuo Molybdenum, while Jinduicheng Molybdenum Co., Ltd. (hereinafter referred to as "JDCMOLY", stock code 601958) and Jinzhai County Urban Development Investment Co., Ltd. (hereinafter referred to as "Jinzhai Urban Development") hold the remaining 10% and 6% equity stakes, respectively.

To support local economic development and extend the industrial chain, JDCMOLY plans to cooperate with Jinsuo Molybdenum to invest in a new supporting molybdenum smelting project locally. Based on JDCMOLY's industry-leading advantages in molybdenum smelting and processing, and to balance the interests of relevant parties and promote the smooth development of the project, the company and JDCMOLY further signed a "Letter of Intent for Cooperation" on August 29, 2025, with the main contents including:

The company intends to transfer 24% of Jinsuo Molybdenum's equity to JDCMOLY at the original transfer price plus necessary financial expenses, with the company leading the construction and operation of Jinsuo Molybdenum. After the transfer is completed, the equity structure of Jinsuo Molybdenum will change to 60% held by the company, 34% held by JDCMOLY, and 6% held by Jinzhai Urban Development.

JDCMOLY intends to jointly invest with Jinsuo Molybdenum to establish a smelting company at the location of the Shapinggou Molybdenum Mine, engaging in the smelting and deep processing of molybdenum metal and other businesses. JDCMOLY will hold 51% equity in the smelting company and lead its construction and operation, while Jinsuo Molybdenum will hold 49% equity