Shanghai Construction says to acquire Eritrea gold mine
Tue Dec 27, 2011 12:53am GMT
SHANGHAI Dec 27 (Reuters) - A subsidiary of Shanghai Construction Group Co.
Ltd. will acquire gold mining assets in Eritrea, according to a company
announcement.
Shanghai Construction will acquire a 60 percent equity stake in Zara Mining
Share Co. for $80 million, the statement said, citing a framework agreement
signed by the two companies.
The deal also gives Shanghai Construction the option to acquire additional
mining rights from Zara for areas where gold reserves have not yet been
confirmed.
Shanghai Construction will conduct the acquisition through wholly-owned
subsidiary China Shanghai (Group) Corporation for Foreign Economic &
Technological Cooperation (SEFCO Group).
SEFCO is involved in various infrastructure projects overseas, including
Vietnam, where it is building a 40,000-seat stadium in the capital Hanoi, a
coal-fired thermal power plant, and a conference center, according to its
website.
The company is also building a liquified petroleum gas pipeline and terminal
project in Pakistan and has worked on some of Shanghai's highest-profile
infrastructure projects, including the Shanghai World Financial Center, the
country's tallest skyscraper.
(Reporting by Gabriel Wildau; Editing by Jonathan Hopfner)
C Thomson Reuters 2011 All rights reserved
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Received on Tue Dec 27 2011 - 11:57:52 EST