CMOC Group Limited

From Wikipedia, the free encyclopedia
(Redirected from China Molybdenum)
CMOC
洛阳钼业
Company typePublic
IndustryMetal and Phosphate mining
Founded1969 [1]
Headquarters
Luanchuan, Luoyang, Henan
,
People's Republic of China
Area served
Worldwide
Key people
Yuan Honglin (Chairman)
Sun Ruiwen (CEO)[2]
ProductsCopper, Molybdenum, Tungsten, Cobalt, Niobium and Phosphate related products
RevenueIncrease CN¥186.3 billion (2023)[3]
Increase CN¥15.5 billion (2023)[4]
Increase CN¥8.2 billion (2023)[5]
OwnerCathay Fortune (30.19%)[6]
CATL (24.68%)[6]
SubsidiariesIXM
WebsiteCMOC

CMOC or CMOC Group Limited (simplified Chinese: 洛阳钼业; traditional Chinese: 洛陽鉬業; pinyin: Luòyáng mù yè), previously known as China Molybdenum Company Limited,[7] is the largest molybdenum producer in Mainland China and among the world's largest companies in the field. It is listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange.

In addition, it is also one of the largest tungsten producers in the world, and is the second largest producer of Cobalt and Niobium as well as leading Copper producer worldwide. The company's headquarters are located in Luanchuan County, close to the city of Luoyang City in Henan. As of 2022, they are ranked 74th in the Fortune China Top 500.[8]

History[edit]

The original company was originally founded in 1969 under the name Luoyang Luanchuan Molybdenum, with the Sandaozhuang mine being established the next year. By the early 2000s, Luoyang Luanchuan was researching ways to extract Scheelite from its main molybdenum mine. Together with Ximen Tungsten Co Ltd, it founded a joint venture, Luoyang Yulu Mining Co. Ltd. to process the ore.[9][10]

In August 2006, the company began planning an initial public offering, and, in preparation for the move, changed its name to China Molybdenum in 2007.[11][12][13] On 26 April 2007, the fim was listed on the Hong Kong Stock Exchange. Its stock was closed at HK$10.28, which was 60% greater than the HK$6.8,stipulated by the IPO, making it one of the 2007 additions with the greatest surplus in stock price at the first trading day. Between 2007 and 2010, CMOC also joined the Hang Seng China Enterprise Index.

In 2010, CMOC acquired 55% of the Shangfanggou mine from the Luoyang Mining Group by buying 50% of Xuzhou Huanyu Molybdenum Co., Ltd and 100% of Luanchuan Huqi Mining Company Limited. The Hong Kong Stock Exchange sanctioned the group for not publicly disclosing the Huqi acquisition in a timely manner.[14]

Shares were first offered on the Shanghai Stock Exchange in 2012. On September 20, CMOC reported raising 600 million yuan selling shares, significantly less than the 3.65 billion yuan initially planned.[15] The scope of the offering was cut back from initial plans due to intervention from the China Securities Regulatory Commission. However, the stock then performed well, quickly tripling in value.[16]

In 2013, CMOC acquired an 80% stake in the Northparkes copper-gold mine in Australia from Rio Tinto.[17] The company sold the entirety of its stake in Northparkes to Australian gold mining company Evolution Mining in December 2023.[18]

A fully owned subsidiary, CMOC International, moved its headquarters to Phoenix, Arizona in 2017.[19] The CEO of this international subsidiary, Kalidas Madhavpeddi, left the company in 2018.[20]

In 2017, the Louis Dreyfus Company announced it was selling its metals trading business, LDC Metals, for $466 million to several Chinese companies, including CMOC and AXAM Asset Management.[21] LDC Metals was then renamed IXM.[22] CMOC took full control of IXM in 2019.[23]

In June 2022, the company officially changed its name from China Molybdenum Company Limited to CMOC Group Limited.[7] Later that year, the company was included at 74 on the Fortune China 500 list.[8]

Leadership[edit]

The current chairman of CMOC is Yuan Honglin (袁宏林), having been elected in June 2020.[24] He replaced Li Chaochun (李朝春), who held the position from 2014 to 2020.[25][26] The two largest shareholders of the company are the Cathay Fortune Group and Chinese battery manufacturer Contemporary Amperex Technology Co Ltd (CATL).[27]

Holdings and subsidiary[edit]

Holdings[edit]

Brazil[edit]

In 2016, CMOC acquired phosphate and niobium mines in the Brazilian states of Goiás and São Paulo from Anglo American plc, including the Boa Vista mine.[28]

China[edit]

In China, the company controls three major mines: the molybdenum-tungsten Sandaozhuang mine (Chinese: 三道莊鉬鎢礦), in Luanchuan County, the Donggebi molybdenum mine in Hami, and the molybdenum-iron Shangfanggou mine (Chinese: 上房溝鉬鐵礦), directly adjacent to the Sandaozhuang mine.[29][30][31] The Sandaozhuang mine is owned fully by CMOC, while the Shangfanggou mine is a joint venture with 45% equity controlled by Luoyang Mining Group.[32]

Democratic Republic of Congo[edit]

In the Democratic Republic of Congo, the company holds an 80% stake in the Tenke Fungurume Mine. This mine was purchased from Freeport-McMoRan in 2016 for $2.65 billion, supported by at least $1.59 billion in loans from Chinese state-backed banks.[33] The deal was facilitated by BHR Partners, which bought out Lundin Mining's minority stake in the mine for $1.14 billion.[33] The mine holds copper, as well as cobalt for lithium-ion batteries.[34] In 2022, the Tenke Fungurume mine became the subject of legal wranglings between CMOC and the DRC government over the amount of royalties paid to the mine's minority partner, Congolese state-owned company Gécamines.[35] An agreement was reached in April 2023 that opened the way for the resumption of minerals exports.[36]

Similarly, through its subsidiary KFM Holding Limited, the company also acquired a 95% stake in the Kisanfu mine from Freeport-McMoRan in 2020 for a price of $550 million, which also produces copper and cobalt.[37] In 2021, the group sold 25% of KFM Holdings to Contemporary Amperex Technology for $137.5 million, leaving it with a 71.25% stake in the Kisanfu project.[38][39] CMOC announced plans in July 2022 to be investing $1.8 billion into the Kisanfu project.[40]

Subsidiary[edit]

IXM[edit]

In 2019, CMOC fully acquired IXM, currently the world's third-largest metals trader.[41][42] The company specializes in the trade of copper, zinc, aluminium, nickel, cobalt, niobium and lithium. Its corporate headquarters is based in Geneva, Switzerland.[43]

Social and environmental response[edit]

In an attempt to distance itself from the mining sector's historically poor record on environmental issues, CMOC launched a number of social responsibility efforts. In the DRC, projects driven by the Tenke Fungurume Mine include conservation efforts, as well as social development and humanitarian aid campaigns for the communities in the region.[44][45] In 2021 the company also announced plans to increase its use of hydro and solar power in the Congo basin.[46][47]

In Australia, the Northparkes mining project won several awards in recognition for their Kokoda biodiversity offset initiative.[48][49]

CMOC joined Better Mining and Fair Cobalt Alliance and partnered with Glencore and Eurasian Resources Group to pilot Re|Source, a blockchain solution to cobalt tracing and responsible procurement.[50][51]

CMOC reported Total CO2 emissions (Direct + Indirect) for 31 December 2020 at 1,030 Kt (+60/+6.2% y-o-y).[52] According to its own figures, CMOC decreased its CO2 intensity in 2021 by 20% compared to 2020.[53]

In August 2021, CMOC received an ESG rating of “A”, up from “BBB”, from MSCI, an investment risk consulting firm, in its annual ESG rating report.[54]

See also[edit]

References[edit]

  1. ^ "CMOC overview". CMOC. Retrieved 2022-12-01.
  2. ^ Nyabiage, Jevans (2022-03-14). "CEO of Chinese mining giant back in DRC as cobalt supplies face biggest test yet". South China Morning Post. Retrieved 2022-06-05.
  3. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Retrieved 24 April 2024.
  4. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Retrieved 24 April 2024.
  5. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Retrieved 24 April 2024.
  6. ^ a b "China's CATL to take near 25% stake in CMOC". Reuters. 2022-10-01. Retrieved 2023-10-19.
  7. ^ a b MarketScreener. "China Molybdenum Co., Ltd. has Changed its Name to CMOC Group Limited | MarketScreener". www.marketscreener.com. Retrieved 2022-09-21.
  8. ^ a b 市场资讯 (2022-07-14). "2022年《财富》中国500强排行榜揭晓 多家有色企业上榜". finance.sina.com.cn. Retrieved 2022-09-21.
  9. ^ United States. Bureau of Mines; Geological Survey (U.S.) (2004). Minerals Yearbook (in German). Bureau of Mines. p. 9-PA8. Retrieved 2022-06-18.
  10. ^ WANG, Xu; QIN, Wen-qing; JIAO, Fen; YANG, Cong-ren; LI, Wei; ZHANG, Zheng-quan; ZHOU, Jin-min; GUO, Jian-gen; ZHANG, Jian (2022). "Review on development of low-grade scheelite recovery from molybdenum tailings in Luanchuan, China: A case study of Luoyang Yulu Mining Company". Transactions of Nonferrous Metals Society of China. 32 (3). Elsevier BV: 980–998. doi:10.1016/s1003-6326(22)65848-5. ISSN 1003-6326.
  11. ^ "Luoyang Luanchuan plans US$600m share sale". South China Morning Post. 2007-01-16. Retrieved 2022-06-13.
  12. ^ "Luoyang Luanchuan plans share sale". South China Morning Post. 2006-09-25. Retrieved 2022-06-13.
  13. ^ "Molybdenum firm to boost tungsten output". South China Morning Post. 2007-03-27. Retrieved 2022-06-17.
  14. ^ "The Listing Committee criticises China Molybdenum Co., Ltd. (stock code: 3993) for breaching the Listing Rules and some former and current directors for breaching the Director's Undertaking". HKEX. 2021-11-05. Retrieved 2022-06-12.
  15. ^ "China Molybdenum raises less-than-expected $95 mln in share sale". U.S. 2012-09-20. Retrieved 2022-06-12.
  16. ^ Shen, Samuel; Takada, Kazunori (2012-10-09). "UPDATE 3-China Molybdenum triples on Shanghai debut; stock deemed undervalued". Reuters. Retrieved 2022-06-12.
  17. ^ Reuters (2013-07-29). "Rio Tinto Agrees to Sell Copper Mine to Chinese Company". The New York Times. ISSN 0362-4331. Retrieved 2023-12-21. {{cite news}}: |last= has generic name (help)
  18. ^ Thomson, Olivia (2023-12-18). "Evolution officially acquires Northparkes majority". Australian Mining. Retrieved 2023-12-21.
  19. ^ Randazzo, Ryan (2017-10-19). "Mining company to move international headquarters to Phoenix, bringing 100 jobs". azcentral.com. Retrieved 2022-06-16.
  20. ^ Lewis, Barbara; Daly, Tom (2018-04-13). "CMOC Intl CEO Madhavpeddi leaves mining giant". Reuters. Retrieved 2022-06-16.
  21. ^ Neil Hume (2017-12-22). "Louis Dreyfus Company sells metals business to Chinese fund". Financial Times. Retrieved 2022-06-16.
  22. ^ "Ex-Louis Dreyfus metal unit changes name to IXM". Reuters. 2018-05-29. Retrieved 2022-06-16.
  23. ^ "China Moly takes full control of ex-Dreyfus metals unit for $518 million". Reuters. 2019-07-25. Retrieved 2022-06-16.
  24. ^ "Directors and Supervisors - CMOC Group Limited". CMOC. Retrieved 2022-09-21.
  25. ^ "China Moly chairman steps down, takes M&A role in reshuffle". Reuters. 2020-06-13. Retrieved 2022-09-21.
  26. ^ "Gold and Copper Summit 2022: Overview of Global Gold Markets in 2022 and Beyond". www.spglobal.com. Retrieved 2022-09-21.
  27. ^ "China's CATL to take near 25% stake in CMOC". Reuters. 2022-11-01. Retrieved 2023-10-19.
  28. ^ Kotze, Chantelle (2016-04-28). "Anglo American sells niobium, phosphates assets for $1.5Bn". Miningreview.com. Retrieved 2022-06-04.
  29. ^ Jani, Ayurvedacharya Dr.Hitesh (2012-09-14). "Leader of China's Molybdenum and Tungsten Industry is Poised to Return to the A Share Market". APN News. Retrieved 2022-06-05.
  30. ^ "INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023" (PDF). hkexnews. 25 August 2023.
  31. ^ "Luoyang Molybdenum Brochure (洛阳钼业宣传册英文版)" (PDF). CMOC.
  32. ^ CMOC. "PROPOSED RE-ELECTION AND ELECTION OF THE DIRECTORS AND THE SUPERVISORS" (PDF). Retrieved 2022-06-12.
  33. ^ a b Searcey, Dionne (2021-11-20). "A Power Struggle Over Cobalt Rattles the Clean Energy Revolution". The New York Times. Retrieved 2022-06-05.
  34. ^ China plays long game on cobalt and electric batteries FT
  35. ^ "CATL takes stake in China Moly cobalt mine for $137.5 mln". Reuters. 2021-04-11. Retrieved 2022-09-21.
  36. ^ "Congo state miner and China's CMOC reach agreement on royalties". Reuters. 2023-04-25. Retrieved 2023-10-19.
  37. ^ "China Moly buys 95% of DRC copper-cobalt mine from Freeport for $550 million". Reuters. 2020-12-13. Retrieved 2022-06-05.
  38. ^ "CMOC Transfers 25% Stake in KFM Holding to CATL". AASTOCKS.COM. Retrieved 2022-09-21.
  39. ^ Rani, Archana (2021-04-12). "CATL to acquire stake in DRC's Kisanfu copper-cobalt mine in $137m deal". Mining Technology. Retrieved 2022-06-12.
  40. ^ "China's CMOC plans $1.8bn investment in Congo copper-cobalt mine". Mining Technology. 2022-07-01. Retrieved 2022-09-21.
  41. ^ "China Moly takes full control of ex-Dreyfus metals unit for $518 mln". Reuters. 2019-07-26. Retrieved 2023-11-24.
  42. ^ "Metal Trader Misery Undercuts Supercycle Hype as Losses Pile Up". Bloomberg.com. 2023-10-08. Retrieved 2023-11-24.
  43. ^ "Environmental, Social and Governance Report 2022" (PDF). IX Metals. 2022. Retrieved 24 November 2023.
  44. ^ "Dix ans de support à la conservation des métallophytes en RDC". www.gembloux.uliege.be (in French). February 2018. Retrieved 2022-09-21.
  45. ^ Rédaction, La (17 December 2021). "RDC : Développement durable, TFM réitère son appui aux orphelins de Fungurume et Tenke (Communiqué) | Zoom Eco" (in French). Retrieved 2022-09-21.
  46. ^ Tossou, Emiliano. "RDC : CMOC envisage le solaire et l'hydroélectricité pour soutenir la hausse de sa production de cuivre-cobalt à Tenke". Agence Ecofin (in French). Retrieved 2022-09-21.
  47. ^ Daly, Tom (2021-10-05). "China's CMOC eyes solar and hydro for Congo copper-cobalt expansion". Reuters. Retrieved 2022-09-21.
  48. ^ "All the winners of Parkes' Citizen of the Year awards". Parkes Champion-Post. 2022-01-27. Retrieved 2022-09-21.
  49. ^ "Northparkes Mine receives award for conservation work". Parkes Champion-Post. 2021-11-29. Retrieved 2022-09-21.
  50. ^ "CMOC". Fair Cobalt Alliance. Retrieved 2022-09-21.
  51. ^ Reporter, Creamer Media. "Glencore, CMOC and ERG to pilot blockchain solution for cobalt tracing". www.engineeringnews.co.za. Retrieved 2022-09-21.
  52. ^ "Environmental Social and Governance Report 2020" (PDF). CMOC. 2020. Archived from the original (PDF) on 2021-09-30.
  53. ^ "Environmental, Social and Governance Report 2022" (PDF). CMOC. 2022.
  54. ^ LeQuotidien (2021-11-13). "Septembre 2021 : CMOC a réalisé un revenu d'exploitation de 13,3 milliards USD - LEQUOTIDIEN RDC" (in French). Retrieved 2022-09-21.

External links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=CMOC_Group_Limited&oldid=1220529838"