The announcement of a 1.529 billion yuan ($233.6 million) limited partnership agreement between major Chinese manganese miners and traders has left many in the market weighing up the significance of such a move.
South Manganese Investment, formerly Citic Dameng Holdings, entered into a limited partnership agreement with 10 participants involved in manganese mining and trading, according to a notice filed to the Hong Kong Stock Exchange by the company on Tuesday March 30.
Named Qingdao Manganese Investment Cooperative Enterprise, the limited partnership will be mainly engaged in the sale and purchase of manganese products, including but not limited to electrolytic metal manganese (manganese flakes or manganese ingots) and its upstream and downstream products, the notice read.
Tianyuan Manganese, with a capital contribution of 720 million yuan, takes up the largest equity interest with 47.09%, followed by South Manganese Group with a capital contribution of 250 million yuan (16.35%) and Mengdu Industry and Trade with a capital contribution of 140 million yuan (9.16%), according to the announcement.
South Manganese shares rose by 2.41% on the day of the announcement, closing at...