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:: Norddeutsche Plans Copper Smelter and Mill in Shandong
Norddeutsche Affinerie, Europe's largest copper producer, said it had signed a letter of intent to build a copper smelter and product mill in China.
Norddeutsche said Thursday it would become involved in a smelter project previously announced by China's Xiang Guang Copper Co., a newcomer in China's copper industry.
Total investment, including a smelter, rolling mill and a power station to feed both, would cost around 330 million euros (US$396.9 million), Norddeutsche said in a statement.
Norddeutsche said it had signed a letter of intent with Chinese investors Yanggu Hongxiang Investment Co. Ltd. and Shandong Fengxiang (Group) Co. Ltd. for the project to build a smelter in Shandong Province.
In its first phase the smelter would have annual production capacity of 200,000 tons of copper cathodes rising to 400,000 tons in later stages while the mill would produce 200,000 tons of cast rod annually. No start date was given.
This was the same cathode production as a project announced this autumn by Xiang Guang Copper. Xiang Guang Copper is reportedly owned by Chinese producer Feng Xiang Group and is said to be associated with the investment companies named by Norddeutsche.
Norddeutsche has long intended to expand in China but its plans in the past have only involved copper product output, not production of primary cathode metal.
The letter of intent will allow concrete talks about a joint venture to proceed in the coming year, Norddeutsche said.
It had received a good offer to participate in the project and had changed its Chinese plans to react to the new events
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