Minmetals profits drop in 2012

The profits of China's largest metals trader China Minmetals Corp fell to 8 billion yuan ($1.3 billion) in 2012, 4.8 billion yuan less than the previous year, affected by the declining global commodities' prices and the economic slowdown, a senior official of the company said on Thursday at an annual work conference.

The company had total revenue of 325 billion yuan, with a record-high sales volume of many products including iron ore, steel, copper and aluminum.

Zhou Zhongshu, president of China Minmetals, said the company's resources reserves were boosted last year. Its iron ore reserves reached about 2.2 billion metric tons and the rare earth reserves reached 161,900 metric tons.

He predicted that the period of soaring demand for metals in the Chinese market has gone and that an industrial reshuffle will happen soon.

"The capital-driven growth of the industry cannot continue in the future," he said. "However, the company will seize opportunities during the urbanization of the western area in China, which will bring demand for metals."

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