SolGold Plc, the mining company developing the large-scale Cascabel copper project in Ecuador, has rejected a second takeover offer from China’s Jiangxi Copper Co., the company confirmed Friday — a development first reported by Bloomberg.
SolGold said it turned down Jiangxi’s latest proposal of 26 pence per share, received on Friday, after also rejecting an earlier bid submitted last Sunday. The news drove a sharp rally in SolGold’s stock, which climbed as much as 17% to 30.65 pence, extending a surge of nearly 30% over the previous four trading sessions.
Once regarded as a prime acquisition target for major Western miners — including shareholders BHP Group and Newmont Corp. — SolGold saw that interest cool following protracted disagreements over funding plans and a scaled-back vision for its flagship Cascabel project. Those disputes have weighed on sentiment in recent years, even as demand for copper has intensified globally.
Jiangxi Copper, already SolGold’s largest shareholder with a 12% stake, has pushed to increase its influence as competition for high-quality copper deposits accelerates. Analysts say miners are positioning aggressively to secure long-term supply as electrification, renewable-energy infrastructure, and electric-vehicle demand drive expectations of a global copper shortfall.
The latest approach comes amid a wave of consolidation attempts in the sector, including last week’s unsuccessful bid by BHP to acquire Anglo American Plc — one of the strongest signs yet of how strategically valuable copper assets have become.
SolGold has not disclosed further details on potential negotiations, but the company’s firm rejection suggests it is holding out for a higher valuation or exploring alternative strategic options as interest in copper intensifies worldwide.
