(Yicai) Oct. 27 -- Shares of China Tungsten and Hightech Materials jumped after the Chinese cemented carbide and tungsten products maker said a shareholder injected a mining asset with proven reserves of about 154,500 tons of the rare gray-silver metal.

Tungsten and Hightech [SHE: 000657] closed 8 percent higher at CNY20.46 (USD2.87) a share today. The broader Shenzhen market rose 1.5 percent. 

Minmetals Tungsten Industry Group will inject its 99.97 percent stake in Hengyang Yuanjing Tungsten into Tungsten and Hightech at a consideration of CNY821 million (USD112.48 million), tax included, Tungsten and Hightech announced late yesterday.

Minmetals Tungsten is the second largest shareholder of Tungsten and Hightech, while both companies are controlled by mineral resources giant China Minmetals.

Hengyang Yuanjing holds tungsten mining rights in Hengyang in central Hunan province, Tungsten and Hightech noted, citing an official geological exploration report. The mine has around 40.36 million tons of tungsten ore resources with an average grade of 0.4 percent as of the end of May, with an annual tungsten concentrate capacity of 2,600 tons, it added.

Last December, Tungsten and Hightech took control of the Shizhuyuan Tungsten Mine, the world's largest tungsten mine, from Minmetals Tungsten. The mine has proven reserves of 500,000 tons, accounting for about 12 percent of the total worldwide, with an annual tungsten concentrate capacity of 8,000 tons.

Zhuzhou-based Tungsten and Hightech's tungsten concentrate output topped 4,200 tons in the first half of this year, while its cemented carbide output exceeded 7,500 tons, according to its latest financial report. The firm also controls the daily operations of another four mines of Minmetals Tungsten through entrusted management.

In 2017, China Minmetals said it would gradually inject its integrated tungsten mining and processing assets into Tungsten and Hightech, making it a world-leading operator of relevant integrated supply chain assets. It still has four other tungsten mines in the integration process.

Editor: Martin Kadiev