|We are a diversified non-ferrous metal mining company based in Hami, a regional city in China’s resource-rich Xinjiang Uygur Autonomous Region. At present, we primarily mine and process nickel and copper ores. Of these metals, we believe the fast-growing domestic demand for nickel provides a particularly favorable business environment for our enterprise, which supplies quality nickel and copper concentrates to the market.
Nickel’s hardness and resistance to oxidation make it an especially valuable commodity in numerous industries. Thus, it is no surprise that China is the world’s leader in terms of refined nickel consumption. However, the domestic supply of nickel does not match its demand growth, and this supply-demand imbalance further favors our present business environment.
In general, we enjoy sizeable and growing non-renewable mineral reserves, which are fundamentally essential for our long-term, sustained growth. Besides 3 mining projects for which we currently hold valid mining and safety production permits, we hold 7 exploration permits for various combinations of copper, nickel, lead, zinc and gold mineralization over a cumulative exploration area of over 44 square kilometers. We also plan, through acquisition efforts, to soon gain non-ferrous metal mining permits in Shaanxi province.
Nevertheless, we remain well placed to gain from the many mining prospects that exist in Xinjiang, which already accounts for 4.63 thousand metric tons, or approximately 5%, of China’s total annual production of nickel content in ore and concentrates. This is mainly because our experienced management team already brings a lot of knowledge to the table in terms of other assets that explore, mine and process nickel and other non-ferrous metal ores in Xinjiang. Through our in-depth evaluation of these assets, we will identify the best ones to acquire and aid our organic growth.
Including geologists and engineers who are expert in mineral reserve exploration to top-notch mine construction, operation and safety, our senior management team has formulated a series of cohesive business strategies to help us become one of China’s leading diversified metal mining companies. These include ramping up our mining and ore processing capacities while keeping a careful eye on the price trends of our respective commodities, and expanding our ore reserves through both organic and inorganic expansion. Moreover, we will reduce our business risks and broaden our revenue base by expanding our product portfolio, as well as our geographical presence. We will also strengthen our relationships with both existing and new customers to more sufficiently meet their supply needs, all while maintaining the strictest protocols to help protect and sustain our environment.