"They have an intention. For now, no agreement has been signed," the executive said when asked whether China Metallurgical might acquire a stake in Huludao .

Senior officials who handle investments at the development and reform division of China Metallurgical were not available for comment. In the first six months of the year, Huludao produced 172,000 tons of zinc, 9.5 percent of China's total output.

Huludao restarted 30,000 tons of capacity at a 130,000-ton-a-year zinc smelter in July, putting the smelter in full operation for the first time in six years.