Xiamen Tungsten, one of China’s largest producers of primary, refined and finished tungsten products, has signed a framework agreement with Kazakh state-owned company Tau-Ken Samruk for a 67% stake in its subsidiary, Severniy Katpar LLP (SKL), for US$40.2M. SKL owns the Severniy Katpar and Verkneye Kairakty mine projects in Karagandy, currently being developed for tungsten, molybdenum and copper.
The agreement includes provisions for value-adding within the country, noting that if the tungsten concentrate produced from either project meets (undisclosed) quality and quantity requirements, an ammonium paratungstate (APT) facility will be established in Kazakhstan. From 1 January 2019, SKL will be financed in a 3:7 ratio, based on the new shareholding. Although not disclosed, such an agreement will presumably give Xiamen Tungsten similar rights to any concentrate and APT produced by SKL. Xiamen Tungsten itself has a capacity of 12ktpy APT, 5ktpy tungsten powder, and 3.5ktpy tungsten carbide powder, in addition to producing concentrates, cemented carbide tools and tungsten wire. Its subsidiaries include Xiamen Golden Egret Special Alloy Co., Jiujiang Golden Egret Hard Material Co., and Fujian Jinxin Tungsten Co.
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