JOHANNESBURG (miningweekly.com) – The Competition Tribunal has approved a large merger between Hesteel International Holding Company, Hesteel Group, Xuanhua Construction Machinery and Smart Union Resources Hong Kong (SUHK), without conditions.
The target firm, SUHK, is an investment holding company based in Hong Kong that controls Palabora Mining Company (PMC), which, in turn, owns Palabora Copper.
Hesteel Group is a Chinese State-owned company that is primarily focused on the production of steel and steel products in China.
Palabora Copper operates a 45 000 t/y copper mine and smelter complex, in Limpopo, with its copper production process also giving rise to by-products such as iron-ore.
During a site visit to PMC last year, Hesteel chairperson Yu Yong noted that the company would add value to Hesteel International’s development.
“Our investment in South Africa and its enterprises will be long term and sustainable,” he said, adding that “South Africa was Hesteel’s favourite country for future development”.