(Yicai Global) Dec. 13 -- Shares in Sinomine Resource Group have surged this morning after the Chinese mineral firm secured state backing to explore and develop African mines.

Its stock [SHE:002738] was up 3.9 percent at CNY14.3 (USD2.05) as of 2.14 p.m., after rising as much as 7 percent in morning trade.

The Beijing-based company and an equity investment fund management firm under the China National Administration of Coal Geology have penned a framework deal to stock up on African mineral rights, Sinomine Resource Group said in a statement yesterday. It did not disclose specific details.

Sinomine said in its first-half report that its mineral rights investment business was dependent on its experience and technology in exploration, and that it planned to acquire more rights through cooperative investment and risk-controlled acquisitions. After surveying the land it may opt to sell the rights for cash or equity, or develop the mines itself.

The company already has contracted engineering projects in Africa and Asia, though it carries out most of its overseas business in Africa.

Editor: James Boynton