Singapore: Singapore-listed Chinese shipbuilder JES International is planning to get into the mining sector, investing S$127m for a 30% stake in Singapore-incorporated Mineriver, a further sign of the likely lengthy grim prospects for shipbuilding.

Mineriver in process of acquiring mineral exploration rights, and later the mining rights, for metals and minerals including magnesium and nickel in Xinjiang in northwest China with a view to a possible future listing.

“The signing of the investment agreement is an important step towards the realization of our overall group strategy, which is to increase our earnings stream that is independent of the cyclical effect in the shipbuilding industry,” said Jin Xin, chairman and ceo of JES.