Recently, Anhui Jinrisheng Mining Co., Ltd., a wholly-owned subsidiary of Dazhong Mining Co., Ltd. (hereinafter referred to as "Jinrisheng Mining"), has received good news that it has successfully obtained the Mining License for the expansion of Zhouyoufang Iron Mine issued by the Department of Natural Resources of Anhui Province. The approved production scale of the iron mine under this license has been significantly increased to 6.5 million mt/year, with a validity period of 30 years. This marks a substantial breakthrough in the "resource increase and production expansion" plan of Jinrisheng Mining's Zhouyoufang Iron Mine, injecting strong momentum into the company's core resource layout and further consolidating its leading position in the iron ore sector.
Zhouyoufang Iron Mine is one of the company's main mines. In September 2024, the company completed the filing certification for the resource increase of Zhouyoufang Iron Mine: as of December 31, 2023, the total ore reserves in the entire area of Zhouyoufang Iron Mine amounted to 282 million mt, an increase of 161 million mt compared to the 121 million mt of filed resources in 2017, laying a solid resource foundation for the expansion plan of Zhouyoufang Iron Mine.
"Resource increase and production expansion" is not only a national policy but also the company's development strategy. The company has formulated detailed plans for the technological transformation of Zhouyoufang Iron Mine's production expansion, intensifying exploration efforts in the deep and peripheral areas of existing mining rights to achieve the goal of resource increase and enhance existing capacity.
The production scale under the Mining License for production expansion has been increased from 4.5 million mt/year to 6.5 million mt/year, creating a prerequisite for the expansion plan of Zhouyoufang Iron Mine. Meanwhile, the 30-year validity period of the mining rights provides a solid guarantee for the long-term and stable development of the mine, further enhancing the company's sustainable development capabilities and industry influence.
As the company's main business, iron ore mining and beneficiation has a development history of over two decades. At present, the company is self-sufficient in the raw materials for its main products, forming an integrated construction of mining, beneficiation, and smelting, with all major production links operated by in-house teams. Consequently, the company has significant advantages in cost control. In 2024, the company's unit sales cost of iron ore concentrates was 370.62 yuan/mt, which is at a relatively low level in the industry. The cost control advantage also enables the company to have stronger bargaining power, profitability, and risk resistance in market competition.
The combination of cost control capabilities and capacity advantages will further solidify the company's development position in the iron ore main business. Dazhong Mining has always adhered to the development strategy of "resources first," taking its own high-quality mine resources as the foundation for development. In the future, Dazhong Mining will continue to improve resource development efficiency, accelerate the conversion of new capacity, consolidate its leading position in the industry, strengthen the construction of its resource portfolio, and continuously reward investors with higher-quality development.
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