China’s Hopu To Invest In Russian Copper Mining Project

Well-connected Chinese private equity firm Hopu Investment Management Co. has signed a memorandum of agreement with Russia’s Baikal Mining to jointly develop a copper mine in eastern Russia, according to an announcement.

The agreement was signed during Russian President Vladimir Putin’s visit to China earlier this week, during which the two countries signed a massive US$400 billion deal to sell Russian natural gas to China.

The Udokan copper field, with over 26 million tons of copper, is the largest copper deposit in Russia.

Hopu has agreed to acquire a minority share in the project by the end of 2014, and also help organize an investment consortium of Chinese financial institutions and other investors to provide funding for the development of the project.

Founded in 2007, Hopu raised a debut fund of US$2.5 billion in 2008. Most recently, it had initial closing at US$1.1 billion for its second fund, Hopu USD Master Fund II, L.P., which focuses on the consumer, natural resources, and financial services sectors.

Last November, Hopu partnered with Temasek Holdings and three other investors in acquiring a 13.25% stake in Yashili International from China Mengniu Dairy for HK$1.6 billion ($213 million).

In February, the company participated in a US$2.5 billion investment in Singapore-based warehouse operator Global Logistic Properties (GLP) with Bank of China Group Investment Ltd and an unnamed Chinese insurance company.


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