MMG Limited (MMG) has approved a further increase in the 2025 annual cap for its Rosebery Concentrate Sales Agreement with Minmetals North-Europe Aktiebolag, lifting the ceiling to US$150.00 million (approximately HK$1.17 billion). The decision, endorsed by MMG’s Board—excluding directors connected to China Minmetals Corporation (CMC)—reflects copper, gold and silver prices that have exceeded prior forecasts.
The sales agreement, signed on 21 December 2023, covers deliveries of precious-metal concentrates from MMG’s Rosebery Mine in Tasmania to Minmetals North-Europe, a wholly-owned subsidiary of CMC. The original 2025 cap was set at US$100.00 million (HK$0.78 billion) and was first revised to US$125.00 million (HK$0.98 billion) on 9 December 2025. All contracted volumes for 2025—about 8,000 dry metric tonnes—were shipped by 31 December 2025, and payments received to date remain below the earlier US$125.00 million limit.
Final settlement amounts are subject to post-shipment pricing adjustments based on average London Metal Exchange and London Bullion Market Association quotations over an agreed period. MMG anticipates these adjustments will raise total consideration beyond the prior cap, prompting the US$25.00 million uplift.
The company confirmed that commercial terms of the Rosebery Concentrate Sales Agreement are unchanged. MMG’s marketing and sales team continues to benchmark each shipment against prevailing market prices and monitor cap utilisation. Internal controls include regular reviews by senior management, oversight by independent non-executive directors, and an annual review by the external auditor.
Given that Minmetals North-Europe is an associate of MMG’s ultimate controlling shareholder CMC, the transaction remains a continuing connected transaction under Hong Kong’s Listing Rules. As the applicable percentage ratios are above 0.1% but below 5%, the revised cap is subject to reporting, annual review and announcement requirements, but does not require independent shareholders’ approval.
MMG engages in the exploration, development and mining of copper, zinc, gold, silver, cobalt, molybdenum and lead worldwide. The CMC Group is one of China’s largest state-owned mining enterprises, while Minmetals North-Europe focuses on trading non-ferrous metals.
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