Hong Kong, Fe. 22 -- Jinchuan Group International Resources Co. Ltd ("Jinchuan International" or the "Company") (Stock Code: 2362) is pleased to announce that it has successfully launched on the Main Board of the Hong Kong Stock Exchange, providing Jinchuan Group Limited ("Jinchuan Group"), its parent company which owns 61.1% equity interest of the Company, with a flagship platform for the development of overseas mining resources, so as to facilitate Jinchuan Group's strategies to establish a multinational mining business and accelerate its overseas development.
Being the flagship for future undertaking overseas operations in exploration and exploitation of mining assets and related trading, Jinchuan International leverages on the expertise and experience of the Jinchuan Group and considers investment, cooperation and acquisition opportunities with regard to nickel, copper and cobalt projects with particular focus in regions including Australia, America, Europe and Asia where have rich non-ferrous metal resources and favourable mineral investment environment for foreign investors.
In late 2010, the Group carried out cooperation with 24 countries regarding mineral resources. It also became shareholder of 17 foreign mining companies and completed 19 investment projects with total investment of US$500 million. The Group has 13 overseas subsidiaries and overseas offices as well. Jinchuan Group obtained 64 mine exploitation permits over the world, with an exploration area of 5,061 sq. km. Content of overseas resources possesses over 1 million tonnes of nickel, over 3 million tonnes of copper, and over 60,000 tonnes of cobalt. In addition, Jinchuan Group's annual output reaches 150,000 tonnes of nickel (ranked 4th in the world), 400,000 tonnes of copper (ranked 3rd in China), 10,000 tonnes of cobalt (ranked 2nd in the world), 3,500 kg of platinum, 8 tonnes of gold, 220 tonnes of silver, 100 tonnes of selenium and 2.8 million tonnes of inorganic chemical products.
With the state-ownership background, industry expertise and experience, as well as the strong market position of Jinchuan Group which major business is vertical integration of mine and metal, Jinchuan International is able to find and assess opportunities for investment in the mining and mineral resources sector, to undertake feasibility studies of identified opportunities, and to assess the quality and potential of identified assets or businesses. With the backing of Jinchuan Group, which is also in the same industry, Jinchuan International is able to command the attention of potential targets easily. The Company is seeking potential investment chances to capture and pursue better business opportunities in the mining and mineral resources sector, so as to enhance the value of shareholders. In fact, with the wide application and the steady growth in global demand for mineral resources riding on the ongoing industralisation and urbanisation, the mining and mineral resources business of nickel, copper and cobalt presents great potential.
According to the Australian Bureau of Agricultural and Resource Economics' Bureau of Rural Sciences ("ABARE-BRS") of the Australian Government, global nickel consumption is projected to grow by around 4% a year, to reach 1.53 million tonnes in 2014. The nickel price was USD23,230 per tonne as at 26 October 2010, representing a year-on-year growth of approximately 25.0%. Queensland Government Mining Journal pointed out that global cobalt production and consumption tripled from 20,000 tonnes per annum in 1995 to nearly 60,000 tonnes per annum in 2007. Increasing environmental awareness led to the increase in the use of cobalt in rechargeable batteries, which was forecast to continue and driven by increased battery production for hybrid vehicles. Demand in cobalt has also been driven by the construction and industrial boom in the PRC. ABARE-BRS of the Australian Government also stated that global growth in copper consumption is expected to gradually increase over the period to 2013-14 as world economic growth begins to recover. Growth in copper consumption over the outlook period is projected to mainly come from the PRC and other developing nations undergoing industrialisation and urbanisation in recent years. In the PRC alone, it is estimated that around half of its copper consumption is used in the power industry, with increased construction activity and expansions to generating capacity expecting to support the PRC's copper consumption over the outlook period.
In accordance with the Company's strategy to diversify its business into the mining and mineral resources sector, Mr. Yang Zhiqiang, who is currently the President of the Jinchuan Group, assumed office of Executive Director, Chairman and Chief Executive Officer of the Company. Joined Jinchuan Group in 1982, Mr. Yang has over 28 years of extensive experience in resources development, mine construction, large-scale metal selection and group production, marketing and capital management. He had served as the Deputy General Manager in Jing Hang Engineering Compan of the Jinchuan Group, Deputy Chief Engineer and General Manager of the Corporate Management Division in the Jinchuan Group, Deputy General Manager in the Jinchuan Group, President and General Manger of Silver non-ferrous Metals Company, and the Deputy Director of the Development and Reform Commission of Gansu Province. The other two Executive Directors of the Company being appointed are Mr. Zhang Sanlin and Mr. Zhang Zhong respectively. Mr. Zhang Sanlin is currently the Vice President of the Jinchuan Group while Mr. Zhang Zhong is the General Manager of Jinchuan Group (Hongkong) Resources Holdings Limited. Both of them have extensive experience in mining business management and corporate asset management.
To celebrate Jinchuan Group enters Hong Kong, a launching ceremony for the establishment of "Jinchuan Group International Resources Co. Ltd." & "China-Africa Jinchuan Investment Ltd." ("China-Africa Jinchuan") was held today, showing that the Group is aggressively exploring the overseas mining resources business by leveraging on the platform of Hong Kong as an international finance and trading centre. Jinchuan International, will become a flagship platform of Jinchuan Group to develop overseas mining resources while China-Africa Jinchuan is a joint venture company registered in Hong Kong to operate mining resources projects in Africa."
Mr. Liu Weiping, Governor of Gansu Province, and the officials from the Central Government's Liaison Office and the HKSAR government attended the launching ceremony of the two subsidiaries of Jinchuan Group and discussed issue of strengthening cooperation between Gansu Province and Hong Kong.
About Jinchuan Group
Founded in 1958, Jinchuan Group is a state-owned enterprise with its majority interest held by the People's Government of Gansu Province. Jinchuan Group is a large-scale non-ferrous mining conglomerate, specializing in mining, concentrating, metallurgy, chemical engineering and further processing. Boasting the world's 3rd largest mines of nickel sulfides associated with cobalt sulfides, Jinchuan Group is a leading nickel and cobalt producer in the world, one of the largest producers of nickel and copper, and cobalt and platinum group of metals in the PRC. In 2010, Jinchuan Group's total annual production of non-ferrous metals was over 520,000 tonnes. Sales was over RMB90 billion. Import and export trade amounted to approximately US$4.6 billion (RMB30.3 billion) while total assets reached RMB66 billion. Jinchuan Group ranked 89th in "Top 500 Chinese Enterprise" and 85th in "Top 500 China Foreign Trade Enterprise". It also ranked 1st in "Top 100 Industrial Enterprises in Gansu" and was listed as the model enterprise of national circular economy and the first batch of national innovative enterprise. Please visit the Jinchuan Group website: http://www.jnmc.com.