Tungaloy to Take Capital in Chinese Tungsten Powder Maker

Japanese major cemented carbide tool maker, Tungaloy Corporation announced on Friday the firm would provide technical assistance and capital participation in Nanchang Cemented Carbide Limited Liability Company, Chinese tungsten powder maker of China Minmetals Group. Tungaloy seeks stable procurement of fine quality tungsten by the capital participation. Tungaloy will take over 21.43% shareholding in Nanchang Cemented Carbide, currently possessed by Minmetals Investment and Development, the financing division of the group. Then Nanchang Cemented Carbide will become a joint venture between Tungaloy and Minmetals Group in early January, 2007.The JV agreement was executed between Tungaloy and Minmetals Group on November 28. Nanchang Cemented Carbide will be reborn into a JV upon ratification by the Chinese competent authorities within this year. The JV’s capital will become to 177.6142 million yuan, controlled by China Minmetals Non-ferrous Metals at 67% share with 21.43% by Tungaloy and 11.57% by Jiangxi Metallurgical Group. The JV will be located in Jiangxi Province and have 834 employees.China Minmetals Non-ferrous Metals, the top shareholder of the JV, is the largest exporter of tungsten products from China and controls several Chinese tungsten miners. Chinese government recently carried out a policy to reduce rare metals output in the country. Under the situation, world cemented carbide tool makers are seeking enclosure of tungsten mines and refineries by capital participation or other ways.