|By ACN Newswire||
|September 14, 2012 04:21 AM EDT||
As disclosed in the prospectus, as a leader of the molybdenum industry, CMOC is China's largest in terms of reserve and China's largest and the world's fourth largest player in terms of output. It is also one of China's largest tungsten concentrate producer. CMOC has unique and abundant mine resources mainly including Sandaozhuang molybdenum and tungsten mine, the molybdenum mine in East Gobi, Hami, Xinjiang and the Shangfanggou molybdenum and iron mine, all being mega mines characterized by distinct advantages of "large reserve, high grade, shallow in terms of buried depth and easy for mining and processing".
Has the largest reserve of molybdenum and second largest reserve of tungsten in China as well as abundant gold and silver resources
According to the most comprehensive reserve verification report currently available, the Sandaozhuang molybdenum and tungsten mine has a molybdenum reserve of approximately 595,200 tonnes, the molybdenum mine in East Gobi, Hami, Xinjiang has a molybdenum reserve of approximately 508,000 tonnes, and the Shangfanggou molybdenum and iron mine has a molybdenum reserve of approximately 191,300 tonnes above elevation 1,154m (513,100 tonnes below elevation 1,154m). Presently, the total molybdenum reserve amounts to approximately 1,807,700 tonnes, the largest in China followed by Jinduicheng Molybdenum with a total reserve of 1,475,600 tonnes. Meanwhile, the Sandaozhuang molybdenum and tungsten mine has a reserve of approximately 407,200 tonnes of scheelite associated with molybdenum, making it the second largest scheelite mine in China after Shizhuyuan scheelite mine. In addition, the Company has abundant gold and silver resources with a proved gold reserve of approximately 68 tonnes.
Be of high grade, shallow in terms of buried depth, easy for mining and very competitive mining costs
The Company's three major mines are endowed with high-grade ores, which is in a leading position among the domestic peers. The grade of the molybdenum ores at the Company's three major mines is above 0.1%, a leading level in the PRC molybdenum industry. At present, there is no other rival for these three mines, except for the Jinduicheng molybdenum mine and Ruyang Donggou molybdenum mine of Jinduicheng Molybdenum Co., Ltd. and the Shapingou molybdenum mine at Jinzhao, Anhui of Tongling Nonferrous Metals Group Co., Ltd. However, Ruyang Donggou molybdenum mine contains a lot of intercalated ore and has a higher damage rate, making its ore recovery ratio fall far behind; and the Shapingou molybdenum mine, which is a underground mine, incurs higher mining costs which offset its advantage of high grade of 0.17%.
At Sandaozhuang molybdenum and tungsten mine, modern, safe and large scale open-pit mining is adopted, digital mining console systems are used, and on-site ore transportation and processing procedures are automated to enhance mining and ore transportation efficiency, thus making the mining costs lower gradually and become more competitive. More importantly, as the Sandaozhuang molybdenum mine has reserve of scheelite associated with molybdenum, the recovery and utilization of scheelite will greatly enhance the profitability of the mine, thereby lowering the overall mining costs of the mine.
Shangfanggou mine, a molybdenum and iron mine, is adjacent to Sandaozhuang mine, and may directly adopt the production mode of Sandaozhuang mine to become the second "Sandaozhuang".
The Company's molybdenum mine at the Gobi Desert of Hami, Xinjiang, is applying for the mining right certificate. The geological conditions of the Gobi Desert will save the Company a large sum of money for future mining activities in respect of land acquisition and reclamation. In addition, the further improvement and application of the Company's experience in mining and processing from Sandaozhuang mine will make the mining costs of the mine very competitive.
Dominant position well established in the molybdenum and tungsten market offers great prospect
Owning large-scale, high-grade and easily accessible high quality mines is the prerequisite for being a top player of the molybdenum industry. The Sandaozhuang molybdenum mine has positioned CMOC as a leading producer of the molybdenum industry and placed it among other top ranking tungsten concentrate producers. The reserves of the molybdenum mine in East Gobi, Hami, Xinjiang and the Shangfanggou molybdenum and iron mine lay a solid foundation for the sustainable development of CMOC and provide strong support for the implementation and fulfillment of its development strategies with molybdenum business as the pillar and tungsten and precious metal as complements.
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