Copper Exhibition | Yunnan Copper’s Acquisition of Liangshan Mining Stake Accepted by SZSE, Strengthening Copper Resource Strategy
Yunnan Copper (601390.SH) announced that its proposed acquisition of a 40% stake in Liangshan Mining has been officially accepted by the Shenzhen Stock Exchange (SZSE). According to the disclosure, the transaction will be carried out via an issuance of shares to purchase assets, accompanied by a supporting financing arrangement. The counterparties include Yunnan Copper Group, with Aluminum Corporation of China (Chinalco) and China Copper Co., Ltd. participating in the financing.
Liangshan Mining, one of Sichuan Province’s leading copper developers, controls several high-quality mineral resources. Its flagship Lala Copper Mine is regarded as one of China’s largest and most stable copper ore deposits, with favorable mining conditions. By acquiring the stake, Yunnan Copper aims to enhance its self-sufficiency in raw materials and further integrate its industrial value chain. The deal, however, still requires SZSE review and registration with the China Securities Regulatory Commission (CSRC), leaving its final execution subject to regulatory approval.
In the non-ferrous metals industry, resource security remains critical for long-term growth. Yunnan Copper’s move is aligned with the broader strategy of leading Chinese copper producers to strengthen upstream resource control. In recent years, domestic copper companies have accelerated mergers and acquisitions to expand reserves and mitigate exposure to global market volatility.
From an industry perspective, China’s copper sector is undergoing structural adjustment. On one hand, demand continues to climb, driven by the rapid development of new energy industries. On the other, global copper mine supply faces ongoing uncertainties. In this environment, securing access to high-quality domestic resources is becoming a key differentiator. The acquisition positions Yunnan Copper to consolidate its competitive edge in the copper industry across Southwest China.
Notably, beyond copper, Liangshan Mining’s deposits also contain associated rare metals with applications in electronics, new energy, and advanced materials. By integrating these resources with its own processing and technical capabilities, Yunnan Copper could diversify its product portfolio and improve resource utilization efficiency.
The deal will adopt a market-based pricing mechanism, with independent professional institutions conducting asset valuation. The final purchase price will fully consider Liangshan Mining’s resource reserves, development potential, and market value. Proceeds from the supporting share issuance will be used to strengthen operations and repay debts, thereby improving the company’s financial position.
Typically, such major restructuring transactions require 3–6 months for regulatory review. Following SZSE approval, the transaction must also be registered with the CSRC. Yunnan Copper stated it will actively advance the process and provide timely updates. Analysts widely expect that, if completed, the acquisition will significantly improve the company’s resource security and profitability.
Copper, as a strategic industrial metal, is widely used in power, construction, and transportation. With global economic recovery and accelerating investment in renewable energy infrastructure, copper demand is set to remain on a growth trajectory. Yunnan Copper’s resource expansion aligns with these trends and lays a solid foundation for the company’s long-term growth.
Operationally, Liangshan Mining brings a well-established mining team and extensive management expertise. Post-acquisition, Yunnan Copper plans to integrate technical know-how and management systems, boosting resource development efficiency. Synergies such as centralized procurement and unified sales are also expected to reduce overall operating costs.
The participation of major state-owned enterprises—including Chinalco—underscores the continued strategic interest of national capital in the non-ferrous sector. As a strategic investor, Chinalco’s strengths in resource development and market networks may further enhance the long-term prospects of the venture.
Yunnan Copper reiterated its commitment to a balanced growth strategy, combining organic expansion with external acquisitions to enhance enterprise value. The acquisition of Liangshan Mining is a key milestone in its resource strategy and is expected to advance steadily in line with regulatory approvals and market conditions.
Source：China-Mcc.com