Anhui Bao magnesium of Yunhai Metal Joint Venture participates in the auction of "Mining right of Dolomite Mine for magnesium smelting in Wujia, Qingyang County Garden"

Recently, Yunhai Metal announced that in order to ensure a stable supply of raw materials for the high-performance magnesium-based light alloy project with an annual output of 300000 tons, the company's joint venture company, Anhui Bao magnesium Light Alloy Co., Ltd., decided to participate in the auction of "Qingyang Garden Wujia magnesium smelting Dolomite Mining right" conducted by Chizhou Natural Resources and Planning Bureau. (the listing transfer notice was announced online on November 12, 2021, and the document number is: pool Natural Resources notice (2021) No. 1), it is uncertain whether the mining rights of Bao mg Company will be competed or not, and there is also uncertainty about whether and when the mining license can be obtained. The mining rights sold this time involve a total of 1.3197813 billion tons of ore in the whole mining area (excluding overlying resources). Among them, the total resources of magnesium smelting dolomite, flux dolomite and flux limestone total 1.2703015 billion tons, construction stone limestone ore and construction dolomite resources total 18.1911 million cubic meters (49.4798 million tons). The exploitation of mineral resources has a high investment risk, there are unforeseen natural and social factors, as well as the adjustment of laws and policies related to mining. The scope of mining rights transferred this time overlaps with the current 2018 version of ecological protection red line. According to the unified deployment of the Ministry of Natural Resources, Chizhou City has assessed and adjusted the ecological protection red line and reported it in May 2021 (the scope of mining rights does not overlap with the reported ecological protection red line after adjustment), but the ecological protection red line after evaluation and adjustment has not been formally approved by the state. If the country does not reply to the ecological protection red line after assessment and adjustment by November 4, 2022, the transferor has the right to cancel the act of granting mining rights, the contract for the transfer of mining rights signed shall not take effect, and the bona fide payment for the transfer of mining rights shall be refunded in full without interest, and the government and the transferor shall not bear any responsibility. The mining right transfer is listed with a reserve price, with a starting price of 4.2221 billion yuan. The board of directors of Bao mg Co., Ltd. authorized the management to participate in the bidding related matters.

Yunhai Metal also pointed out that Nanjing Yunhai Special Metals Co., Ltd., Baosteel Metals Co., Ltd. and Qingyang County Construction Investment Group Co., Ltd. signed an investment agreement on November 25, 2020. jointly invested in the establishment of Anhui Baomagnesia Light Alloy Co., Ltd. (hereinafter referred to as "Baomagnesia Company"). Bao magnesium Co., Ltd. as the main body of the project, plans to build a 26.5km corridor in Wujia Dolomite Mining area, Youhua Town, Qingyang County, with an annual throughput of 30 million tons. Construction project with an annual output of 300000 tons of high-performance magnesium-based light alloy, 150000 tons of magnesium alloy die-casting components, 1 million tons of flux and 25 million tons of aggregate and machine-made sand. The total investment of the project is 11.2 billion yuan. The mining right investment is a sub-project of the project.