Xinjiang Baodi Mining (601121.SH) plans to increase its stake by 87% in the acquisition of Congling Energy, enhancing the competitiveness of its main business.

Xinjiang Baodi Mining (601121.SH) announcement, the company plans to purchase 82% of the equity of Congling Energy from Congling Industrial through issuing shares and paying cash, purchase 5% of the equity of Congling Energy from JAAN, and issue shares to up to 35 specific investors who meet the conditions of the China Securities Regulatory Commission to raise matching funds. The company's main business is the mining, beneficiation, and sales of iron ore concentrates. Congling Energy is in line with the company's main business, with good endowments of the Ziloi North iron ore resources, abundant reserves, a single type of ore, good selectivity, and it is one of the rare mines in China that can produce high-quality iron ore concentrates with a grade of 68% or above. Congling Energy is currently carrying out construction works related to the 3.2 million tons/year beneficiation tailings project. Upon completion of the project, Congling Energy will rely on its high-grade iron ore concentrates to become a highly competitive supplier of iron ore in the region. After the completion of this transaction, the company's scale of iron ore mining and beneficiation and the sales volume of iron ore concentrates will be further increased. The supply of the company's high-quality iron ore concentrates will greatly increase, thereby further enhancing the company's competitiveness in its main business, improving its risk resistance and industry influence.