(Yicai Global) Aug. 27 -- JCHX Mining Management plans to invest USD2.75 million to buy the mining rights to two copper mines that have ceased production in Dikulushi in the Democratic Republic of the Congo, together with their associated assets.

The move aims to extend the firm's business from mining engineering to mining development, the company announced yesterday.

The Dikulushi investment accords with the company's long-term growth scheme and will help it develop its industrial chain, JCHX Mining Management gave as the reasons for its pursuit of the project. The Beijing-based firm, which provides mining engineering services, has mine development engineering contracts in the DRC and Zambia but rarely engages in direct mine exploitation.

The company's wholly-owned local unit Eunitial Mining Investment signed a share transfer agreement for the project yesterday with its owner Anvil Mining Congo. The volume of ore to be extracted from one mining site under the contract is 1.13 million tons and the mining rights are valid until 2022, while the other mine will yield 575,000 tons and have a contract term that lapses in 2043, per the announcement.

Production has been discontinued at the sites since 2015, and some equipment has been dismantled, while the rest has gone unmaintained, and the mining rights to one of the sites are under pledge. The prerequisite for the stock price transfers to take effect is that these assets must be fully redeemed and restored, per the statement.

The Dikulushi copper mine lies in the southeast of the DRC, near the country's border with Zambia.

Editor: Ben Armour