|We specialise in the production of nickel and copper concentrates, which we sell to customers that operate smelters for further smelting and/or refinery and to trading companies which resell our metal concentrates to smelters.
Through our subsidiary, Hami Jinhua, we enjoy 90% attributable shares in 3 mining projects with valid mining and safety production permits, 2 metal concentrators and 7 other projects with valid exploration permits (see map). Our subsidiary has also conditionally agreed to wholly acquire two Shaanxi-based mining entities.
In March 2010, we entered into sales contract with Nickel City for a term of 5 years expiring in December 2014. Nickel City has agreed to purchase 500 tonnes of nickel in nickel concentrates per annum. Nickel City is a procurement agent appointed by Jinchuan Group to source nickel concentrates. Jinchuan Group, the largest integrated non-ferrous metallurgic and chemical engineering enterprise engaged in mining, concentration metallurgy and chemical engineering. Its output of nickel and platinum group metals account for more than 90% of the total output in the PRC respectively, making it deserve its name of the “Nickel City of China”.
On 15 December 2011, we entered into a 3-year sales agreement with 哈密欽泊利金屬有限公司(Hami Qin Bo Li Metal Co. Ltd.) for the sales of copper in copper concentrates.
Our non-wholly-owned subsidiary, Hami Jinhua, has conditionally agreed to wholly acquire Shaanxi Jiarun and Shaanxi Jiahe, dependent on these Shaanxi-based entities receiving valid mining permits for Project Huaba and Project Huangjinmei, respectively. The type of ore under exploration in Project Huaba is vanadium ore, and the permit for mining there is expected to be granted in 2012. The type of ore under exploration in Project Huangjinmei is gold ore, and the permit for mining there is expected to be granted in 2012.