Jiangxi Copper Seeks Approval for RMB 30 Billion+ Connected Supply & Service Deals With Parent JCC, Adds Land Lease Through 2029

Bulletin Express
Yesterday

Jiangxi Copper Company Limited announced three new connected agreements with its 45.72% shareholder Jiangxi Copper Corporation (JCC), extending and expanding the parties’ long-standing supply, service and leasing arrangements for a further three years (1 January 2027–31 December 2029).

Agreement 1 – Inbound supply and services: JCC Group will continue to provide copper concentrates, auxiliary materials, spare parts as well as a broad suite of support services. Proposed annual caps rise sharply to RMB 17.17 billion, RMB 17.38 billion and RMB 17.51 billion for 2027-2029 respectively, driven by higher precious-metal prices and expanded gold and silver purchases.

Agreement 2 – Outbound supply and services: Jiangxi Copper will supply cathode copper, copper rod and wire, lead-zinc products, sulphuric acid and other materials to JCC Group, in addition to construction, repair, utilities and R&D services. Proposed caps are set at RMB 5.57 billion, RMB 6.70 billion and RMB 6.93 billion across the same three-year period, reflecting expected growth in JCC Group’s demand for cathode copper amid a firming copper price trend.

Land Use Rights & Properties Leasing Agreement: JCC will lease approximately 50.40 million m² of land and 16,770 m² of properties to Jiangxi Copper for office and plant use at an annual rent of about RMB 195.11 million. Under IFRS 16, the lease will create right-of-use assets of roughly RMB 521.48 million.

Regulatory implications: Because one or more percentage ratios exceed 5%, Agreements 1 and 2 require reporting, announcement, annual review and independent shareholders’ approval under Hong Kong Listing Rules Chapter 14A; the land lease, while below 5% on percentage ratios, also needs independent approval under Shanghai Stock Exchange rules. An extraordinary general meeting will be convened, with JCC and its associates abstaining from voting.

Board and governance: The transactions were approved by the board on 30 September 2026; three directors who also serve JCC abstained. Jiangxi Copper has outlined multi-layered internal controls to benchmark pricing against at least two independent parties (where available) and to monitor utilisation of annual caps.

Strategic rationale: Management expects the arrangements to secure reliable raw-material channels, leverage JCC’s market reach, reduce overlapping investment and support continued expansion in copper, gold and silver businesses while keeping terms no less favourable than those available from or to independent third parties.

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