Xiamen C&D (SHA:600153) is negotiating with Russia-based Nornickel to form a copper smelting joint venture in China, Reuters reported Thursday, citing two sources with knowledge of the matter.

The Russian nickel company faces equipment importation problems due to sanctions against the country, the report said.

Nornickel said in April it will close its Arctic factory and establish a copper production facility in China by mid-2027. However, it has since been looking into purchasing a stake in a smelter, the report said, citing the sources.

The smelter is Xiamen C&D-majority held Yanggu Xiangguang Copper, the report said.

Details of the deal are not yet final, according to Reuters.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)