JES International Holdings is massively diversifying from being a major private shipbuilding group based in the PRC to owning mines in the Xinjiang Uygur autonomous region of China.
JES has entered into a conditional investment agreement with Mineriver Pte Ltd for the acquisition of up to a 30% stake in Mineriver for S$127.0 million.
Mineriver is a Singapore-incorporated company which will acquire the entire issued share capital of a Xinjiang company, which holds mineral exploration rights in the Xinjiang Uygur. The mineral exploration rights are with respect to metals and minerals, which includes magnesium and nickel.
Mineriver is expected to obtain the relevant mining rights and operate production lines to manufacture magnesium products.
The Xinjiang company, Xinjiang Feng Li De Yuan Trading Co, had a net value of 381,000 yuan (S$77,590) as at July 31, according to an independent valuation report dated Oct 22 by Xinjiang Tiannuo Zhengxin Assets Appraisal Ltd Co.
The valuation does not include the magnesium and nickel assets of the firm, which are believed to be worth at least $60 billion.
As no proper valuation exercise of the assets has been carried out, the $60 billion was based on internal consensus, JES chief financial officer Patrick Kan told The Business Times.
This is just a yardstick which the owner of the mine and the introducer is confident of reaching," he said. "Based on this $60 billion, compared to the amount we are going to invest, it is very good value."
Read more at http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/7629-shipbuilder-jes-ventures-massively-into-mining
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