(Corrects buying price of 49 percent stake to 5.595 billion yuan from 5.559 billion yuan in paragraph 3 after company's official clarification)
*China Minmetals pays $820 mln for 49 pct; gets 2 pct for free
HONG KONG, Dec 28 - China Minmetals Corporation has agreed to take a 51 percent stake in Hunan Nonferrous Metals Holding Group, making the state-owned ferrous and nonferrous metals trading house the largest producer of zinc and antimony in the country.
Hunan Nonferrous is the parent of Hunan Nonferrous Metals Co Ltd (2626.HK). Shares of Hunan Nonferrous Metals ended up 3.7 percent at HK$3.60 before trading was suspended last Thursday.
On Dec 24, China Minmetals' nonferrous unit China Minmetals Nonferrous Metals Co Ltd agreed to pay 5.595 billion yuan ($820 million) to buy a 49 percent stake in Hunan Nonferrous from the Hunan provincial government, the state-owned company said in a statement on its website on Monday. (www.minmetals.com.cn)
The provincial government transferred a further 2 percent stake in the local group to China Minmetals Nonferrous Metals on Dec 28 for free, according to the statement.
The stake is bigger than 40 percent stake under a preliminary agreement signed by the Hunan government and China Minmetals in September 2008.
The provincial government now keeps a 49 percent stake, the statement said.
In the next 3 to 5 years, the new Hunan Nonferrous would consolidate tungsten, antimony, tin, rare earth, lead and zinc resources in the province, it said.
Listed Hunan Nonferrous Metals Co controls Zhuzhou Smelter (600961.SS) and Hsikwangshan Twinkling Star Company, the top producers of zinc and antimony, respectively, in China, which is the world's biggest producing nation for the two metals.
In June, China Minmetals Nonferrous Metals took over most of the assets of Australia's OZ Minerals Ltd (OZL.AX) for about $1.4 billion, including Century mine, the world's second-largest zinc mine. [ID:nSYU006710]
($1 = 6.827 Yuan)
(Editing by Anshuman Daga; Editing by Ruth Pitchford)