(Yicai Global) July 9 -- Jiayou International Logistics’ announcement yesterday that it will provide ongoing cross-border logistics services to the Oyu Tolgoi copper-gold mine in Mongolia’s South Gobi region over the next five years sent its shares soaring over 9 percent this morning to a 15-month high.

Jiayou will provide the mine with cross-border logistic and bonded warehousing services within Chinese territory for at least 700,000 tons of copper concentrate and will supply consumables and equipment, such as grinding balls, quicklime and other materials needed in the mine's daily operations, per the service contract the Beijing-based cross-border logistics and warehousing service provider penned with the mine's Ulaanbataar-based operator Oyu Tolgoi yesterday

Jiayou’s shares [SHA:603871] were up 6.54 percent in mid-afternoon to CNY24.44 (USD3.46).

The two firms renewed the five-year contract they signed in 2015 after its lapse, per the statement. Their cooperation will lay a solid foundation for the Chinese company to promote the growth of its China-Mongolia cross-border integrated logistics business by setting its focus on the Ganqimaodu port, which lies smack in the middle along the two nations’ frontier. Their collaboration is expected to positively impact the company's performance this year and in years to come.

China's Ganqimaodu port, through which over 700,000 tons of copper concentrates have entered China from Mongolia for each of the last six years, is the main port via which China imports copper concentrate and coal from Mongolia and it is Oyu Tolgoi’s largest port for export of its products, public information shows.

With an expected lifespan of 50 years, the Oyu Tolgoi copper-gold mine is one of the world's major high-grade copper deposits. With initial proven reserves of 31.1 million tons, initial proven gold reserves of 13.3 million tons and 76 million tons of silver, it started production in July 2013.

Vancouver-based Turquoise Hill Resources, which trades on the Toronto and New York stock exchanges, owns 66 percent of equity in the mine and the Mongolian government holds the rest. Australian international mine giant Rio Tinto is Turquoise Hill Resources' major shareholder with a 50.8 percent stake. It is listed in Australia.

Editor: Ben Armour