Inner Mongolia Dazhong Mining (SHE:001203) agreed to sell its Dongwufenzi iron ore concentrator and related surface assets to related party Taixiangxiang Mining for 90.2 million yuan.
The decision follows declines in processing volume and capacity utilization as well as higher raw ore processing cost, according to a Monday filing with the Shenzhen bourse.
The company also determined it is cheaper to transport ore 16 kilometers to its upgraded Shujigou facility for centralized processing.
Shares of the miner were down 2% in recent trade.