Xiamen Tungsten Co., Ltd. (SH: 600549) has announced a cash acquisition of a combined 30.1683% equity interest in Jiangxi Jutong from three related parties, totaling 593 million yuan.
The company will pay 256 million yuan to acquire a 13.0332% stake held by Fujian Juhong Rare Metals Investment Partnership (Juhong Fund), 192 million yuan for a 9.7749% stake from Xiamen Sanhong Tungsten & Molybdenum Co., Ltd., and 145 million yuan for a 7.3601% stake from Fujian Rare Earth & Rare Metals (Group) Co., Ltd. (Rare Earth Group).
Jiangxi Jutong serves as the operating entity for the development and construction of the Dahutang tungsten mine, holding mining licenses for both the northern zone (License No. C3600002011013120103925) and the southern zone (License No. C3600002011013120103924) of the deposit.
Upon completion of this transaction, Xiamen Tungsten will directly hold 31.5166% of Jiangxi Jutong. The company will also enter into a "Concert Party Agreement" with Rare Earth Group, positioning Xiamen Tungsten to take the lead in Jiangxi Jutong's management and operations. Once the acquisition closes and the agreement takes effect, Jiangxi Jutong will become a controlled entity and be consolidated into Xiamen Tungsten's financial statements.
As the company continues to expand production capacity in downstream and application segments of the tungsten industry chain—such as cemented carbide, cutting tools, and tungsten wire—its demand for tungsten resources has grown year over year. This acquisition is expected to bolster resource reserves, enhance raw material self-sufficiency, ensure stable production operations, reduce related-party transactions, and support long-term sustainable development, all in line with the company's strategic plan.
Since Jiangxi Jutong is not yet in production, the deal is not expected to have a significant short-term impact on Xiamen Tungsten's financial performance.
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