en.Wedoany.com Report on Mar 26th, Xiamen Tungsten Co., Ltd. announced on March 26, 2026, that it has signed a tripartite "Cooperation Agreement" with Fujian Provincial Industrial Holding Group Co., Ltd. (referred to as "Provincial Industrial Holding Group") and Jiangxi Tungsten Holding Group Co., Ltd. (referred to as "Jiangxi Tungsten Group") to acquire a 30.1683% stake in Jiangxi Jutong Industrial Co., Ltd. (referred to as "Jiangxi Jutong"). This transaction aims to strengthen the supply of upstream tungsten raw materials, increase the self-sufficiency rate of resources, and provide raw material security for the company's downstream deep-processing business in the tungsten industry chain.
According to the agreement, Xiamen Tungsten will acquire the 30.1683% stake in Jiangxi Jutong from an affiliated enterprise of the Provincial Industrial Holding Group, while Jiangxi Tungsten Group will simultaneously acquire a 30% stake. Upon completion of the transaction, the shareholding ratio of the affiliated enterprise of the Provincial Industrial Holding Group will decrease to 25%, with Xiamen Tungsten and Jiangxi Tungsten Group becoming the first and second largest shareholders, respectively.
The transaction price is based on the "Asset Valuation Report (Draft)" issued by a third-party appraisal agency, which values the total equity of the target company at approximately 1.966 billion yuan. The final price will be determined based on the valuation results reviewed and filed by the Fujian Provincial State-owned Assets Supervision and Administration Commission.
As the operating entity for the development and construction of the Dahutang Tungsten Mine, Jiangxi Jutong holds mining licenses for both the northern and southern sections. The total proven reserves amount to approximately 1.383 million tons of WO3 metal and about 33,000 tons of molybdenum metal, representing a significant resource reserve. Specifically:
The northern section employs open-pit mining with an annual production capacity of 6.6 million tons. The mining area covers 6.7109 square kilometers, with a validity period until December 2049. It contains proven industrial ore reserves of 843,300 tons of WO3 metal, along with associated copper metal reserves of 437,800 tons and molybdenum metal reserves of 5,552 tons.
The southern section employs underground mining with an annual production capacity of 1.65 million tons. The mining area covers 4.2363 square kilometers, with a validity period until December 2052. It contains proven industrial ore reserves of 370,300 tons of WO3 metal, along with associated copper metal reserves of 245,800 tons and molybdenum metal reserves of 25,100 tons.
It is noteworthy that Jiangxi Jutong is currently operating at a loss. In 2025, it achieved operating revenue of 5.7052 million yuan but incurred a net loss of 89.7877 million yuan. As of the end of 2025, its net assets were negative 272 million yuan. Xiamen Tungsten stated that after the acquisition, it will actively promote the construction of the Dahutang Tungsten Mine to improve resource development efficiency.
Xiamen Tungsten emphasized in the announcement that as the company expands its capacity for deep-processing businesses such as cemented carbide, cutting tools, and tungsten wire, the demand for tungsten resources continues to grow. Currently, the company's own tungsten mines can only meet part of this demand. Through this acquisition:
According to the agreement, Xiamen Tungsten will obtain a priority purchase right for 60% of the tungsten concentrate from the Dahutang Tungsten Mine, while Jiangxi Tungsten Group will obtain a priority purchase right for 40%. This arrangement will ensure the stability of Xiamen Tungsten's raw material supply.
