Xiamen Tungsten will cooperate with China Minmetals Non-Ferrous Metals (CMNM), a Xiamen-based tungsten company, and the Jiujiang government in Jiangxi province to explore and develop tungsten resources in Jiujiang, reports CapitalVue.
The total investment amount is expected to reach four billion yuan. According to the agreement, Xiament Tungsten and CMNM will jointly invest two billion yuan to set up a new company.
The company will be in charge of a project which will produce around 6,000 tons of tungsten powder and 4,000 tons of kentanium.
Xiamen Tungsten will have a 79% interest in the proposed project, which is scheduled to be completed in 2013. CMNM will hold the remaining equity in the project.
The first phase of the project will be put into operation by the end of the first half of 2011.
Xiamen Tungsten plans to invest a further two billion yuan jointly with the Xiamen-based tungsten company in the exploration and development of tungsten resources in Jiujiang.