hankyoreh

Chinese firms have bought a controlling stake in one of the largest copper mines in North Korea, industry sources said Sunday.

Sources familiar with business cooperation between North Korea and China said Hebei-based Luanhe Industrial Group and another privately owned company signed a deal that gives the firms control over Hyesan Youth Cooper Mine in Yanggang Province.

The contract for the mine located near the North Korean-Chinese border was signed on Nov. 27 in Pyongyang with Luanhe and its partner receiving a 51 percent stake, giving them managerial control of the mine. No details on the financial terms of the transaction were released.

Hyesan mine lies about 65 kilometerts south of Mount Paekdu and near Changbai, China. It is estimated to have 420,000 tons of copper, with 250,000 tons that are buried 600 meters from the surface already being mined.

Roughly 2,000 tons of copper ore are excavated daily.

Luanhe, a trading company engaged in development of various resources, real estate and cement businesses, ranks 75th among China's privately owned companies.

The reported takeover of the mine comes as North Korea has taken steps to sell the rights to various mineral mines to Chinese companies.

This has raised concerns in South Korea that Pyongyang is selling its natural resources to overcome its economic woes.

Beijing, Dec. 24 (Yonhap News)