Economy

China investor denies exit from DPRK mine program

By Uking Sun (chinadaily.com.cn)
Updated: 2010-07-02 20:15

Wanxiang Group Corporation, a privately-owned car parts manufacturer based in East China's Zhejiang province，has denied reports that it withdrew its investment in the Hyesan Youth Copper Mine in the Democratic People's Republic of Korea.

Wanxiang reportedly had to give up the share in the company after the DPRK part demanded a salary increase for its employees and wanted to increase its stake in the joint venture, established in October 2007.

Wanxiang already invested over 150 million yuan ($22 million) in the mine through Sino-Mining International Investment Co., Ltd., Wanxiang's wholly-owned subsidiary, which borders China and has the largest reserve of copper in Asia, China News reported.

Sources with Wanxiang told China News that DPRK did make the demands in 2009 but the dispute was solved after negotiation, especially after Chinese Premier Wen Jiabao's visit to the country last year.