09:15     JIANGXI COPPER<00358> - Announcement (1)                            

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liabilities          
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    JIANGXI COPPER COMPANY LIMITED                                            
    (A Sino-foreign joint venture joint stock limited company incorporated    
    in the People's Republic of China)                                        
                                                                              
    (Stock Code : 0358)                                                       
                                                                              
    ANNOUNCEMENT                                                              
    CONNECTED TRANSACTION                                                     
    Establishment of Joint Venture                                            
                                                                              
                                                                              
    The Board wishes to announce that on 25 January, 2005, the Company        
    entered into the JV Agreement with JCC to establish the JV Company to     
    engage in the manufacturing of copper and copper alloy rods and wires.    
    Pursuant to the JV Agreement, the Company agreed to invest a sum of       
    RMB119,700,000 (equivalent to approximately HK$112,924,528) in cash as    
    capital contribution to the JV Company. The JV Company will be owned      
    as to 60% by the Company and 40% by JCC.                                  
                                                                              
    The Directors (including the independent non-executive Directors)         
    consider that the terms and conditions of the JV Agreement are fair       
    and reasonable as far as the Company and its shareholders are             
    concerned.                                                                
                                                                              
    In view of the fact that JCC is a substantial shareholder of the          
    Company holding approximately 47.88% of the total issued share capital    
    of the Company, JCC is a connected person under the Listing Rules. In     
    that regard, the establishment of the JV Company by the Company and       
    JCC constitutes a connected transaction of the Company under Rule         
    14A.13(6) of the Listing Rules. Given that the relevant Percentage        
    Ratio exceeds 0.1% but does not exceed 2.5% of the Percentage Ratios,     
    the transactions under the JV Agreement will be subject to disclosure     
    requirements under Rule 14A.32(1) of the Listing Rules.                   
                                                                              
    INTRODUCTION                                                              
                                                                              
    The Board wishes to announce that on 25 January, 2005, the Company        
    entered into the JV Agreement with JCC to establish the JV Company to     
    engage in the manufacturing of copper and copper alloy rods and wires.    
                                                                              
    JV AGREEMENT                                                              
                                                                              
    Date: 25 January, 2005                                                    
                                                                              
    Parties: the Company; and                                                 
                                                                              
    JCC, a substantial shareholder holding approximately 47.88% of the        
    total issued share capital of the Company.                                
                                                                              
    Business: The JV Company will engage in manufacturing of copper and       
    copper alloy rods and wires; providing after-sale service for its         
    products and other related services and business.                         
                                                                              
    Term: 30 years from the date of issue of the business licence of the      
    JV Company.                                                               
                                                                              
    Capital Structure: The registered capital of the JV Company shall be      
    RMB199,500,000 (equivalent to approximately HK$188,207,547) and the       
    total investment of the JV Company shall be RMB400,400,000 (equivalent    
    to approximately HK$377,735,849).                                         
                                                                              
    The registered capital of the JV Company will be contributed as to        
    RMB119,700,000 (equivalent to approximately HK$112,924,528) by the        
    Company and as to RMB79,800,000 (equivalent to approximately HK           
    $75,283,019) by JCC in the following manners :-                           
                                                                              
    (a) 50% of the registered capital will be payable within 10 days from     
    the date of the signing of the JV Agreement; and                          
                                                                              
    (b) the remaining 50% of the registered capital will be payable within    
    20 days from the date of issue of the business licence of the JV          
    Company.                                                                  
                                                                              
    There are no provisions in the JV Agreement requiring the Company to      
    contribute any amount in excess of RMB119,700,000 and there are no        
    terms in the JV Agreement in respect of the financing of the              
    difference between the amount of he registered capital and the total      
    investment of the JV Company.