China Mining Resources Group has acquired a 75% interest in Harbin Songjiang Copper, aspiring to become a leading player in Asia"s mining sector.

China Mining Resources has gained expertise in high quality mining extraction with the acquisition of Harbin Songjiang Copper, a China-based company which specializes in mining and processing of molybdenum, copper and zinc.

This deal complements China Mining Resources acquisition in October last year of a 57% stake in Lead Sun Investments Limited, through which the company gained rights to a Shanxi-based rutile production and trading business.

China Mining Resources chairman Cai Yuan says: "These acquisitions will establish a firm footing for us to build a portfolio of strong mining businesses with an emphasis on high quality activities. This is crucial for our transformation into a substantial participant and ultimately a leading player in the mining sector in Asia ."

"The Harbin Songjiang acquisition will provide us with an immediate stream of revenue and cash. What is more important to us is that Harbin Songjiang will bring us a team of experts in the mining industry.

"This team of experts can help us strengthen our business and expansion capabilities in titanium and other related activities, strengthen our decision making and operational capabilities for forthcoming potential acquisitions," Cai Yuan says.

Harbin Songjiang general manager Dong Wenxue, 55, chairman since 1997, and Harbin Songjiang deputy general manager Wang Hui, 47, will be invited to join its board of directors when the acquisition is completed.

Harbin Songjiang is principally engaged in mining and processing of molybdenum, copper and zinc. Molybdenum, used as an alloy agent in steel, cast iron and super alloys, accounts for a majority of Harbin Songjiang's operations and earnings.

Harbin Songjiang was established in 1972 under the name Zongjiang Copper Mine. In 2005, it became a non-state-owned limited liability company.

As an alloy agent, molybdenum is used to enhance hardness, strength, toughness and resistance to wear and corrosion, and has few substitutes. Copper and zinc, Harbin Songjiang's other two core products, have wide ranging applications in industry. Zinc is used as a reactive agent for the production of galvanized steel, while copper is used extensively in the electrical, automobile, and chemical industries.

Meanwhile, China Mining Resources is engaged in the exploration and extraction of rutile; the processing and trading of titanium products; and a storage service for stem cells from umbilical cords.

Last year the company secured a licence for rutile mines covering an area of two square kilometers with an estimated exploration potential of approximately 1.9 million tonnes and plans to develop an annual production capacity of 21,400 tonnes of rutile concentrate. The company also plans to build a facility to produce titanium chloride and titanium sponge from rutile concentrate. The expertise from Harbin Songjian will strengthen the operational capabilities of the projects. The licence makes it possible for China Mining Resources to become a major player in the Chinese rutile industry.