Naipu Mining Machinery, a Chinese maker of mining equipment, said it has decided to invest USD25 million to set up a wholly owned subsidiary in Serbia and build a production base in the country to better serve clients in eastern Europe and North Africa.
The new unit and its plant will provide services to Zijin Mining Group, an important client that just completed a 10 million tons expansion projects at its Chukhalu-Page copper-gold mine and Bore copper mine, Shangrao-based Naipu Mining announced today
The investment does not need shareholder approval, but still needs the go-ahead from the authorities in Jiangxi province, Naipu Mining added, adding that it also has to complete business registration procedures in Serbia.
The move is based on the company’s development blueprint and is in line with its overall strategy and the long-term interests of shareholders, Naipu Mining said. It will not significantly impact the firm’s finances and operations, with no damage to the interests of the company and shareholders, it noted.
Naipu Mining integrates research and development, production, sales, and services in producing heavy mining and mineral processing equipment and relative wear-resistant spare parts of new materials.
Shares of Naipu Mining [SHE: 300818] closed down 2.7 percent at CNY31.59 (USD4.38) today. The broader Shenzhen market fell 0.6 percent, Yicai Global reports.
