Battery giant CATL weighs 10% stake in miner Jinchuan – Bloomberg News

FILE PHOTO: A sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL) is seen on its building in Ningde, Fujian province, China August 8, 2018. Picture taken August 8, 2018. REUTERS/Stringer

(Reuters) -Contemporary Amperex Technology Co Ltd is weighing buying around 10% of Chinese miner Jinchuan Group International Resources Co in the hopes of securing supplies of key battery metals, Bloomberg News reported on Thursday.

The Chinese battery maker is in initial discussions with Jinchuan International – the Hong Kong-listed arm of state-run metals producer Jinchuan Group – about buying a stake and could offer more than one-and-a-half times its share price, Bloomberg said, citing people with knowledge of the matter.

Jinchuan International shares soared as much as 90.5% to HK$2.00 ($0.2569) on Thursday, their highest since March 2018.

CATL declined to comment, while Jinchuan International did not immediately respond to requests for comment. 2 Hong Kong dollars

Jinchuan International, which mines battery metal cobalt in the Democratic Republic of Congo (DRC), produced 1,447 tonnes of cobalt in the first half of this year, as well as 28,503 tonnes of copper.

Ningde-based CATL has already made several investments in miners producing battery metals, taking small stakes in lithium producers Pilbara Minerals and Neo Lithium Corp, as well as a near 21% interest in Greenland-focused North American Nickel.

In April, a CATL unit agreed to pay $137.5 million for a stake in the Kisanfu copper-cobalt mine in the DRC, the world’s biggest-cobalt producing country.

($1 = 7.7855 Hong Kong dollars)

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