HONG KONG, Aug. 31, 2011 /PRNewswire-Asia/ -- China Vanadium Titano-Magnetite Mining Company Limited ("China VTM Mining" or the "Company", together with its subsidiaries, the "Group"; stock code: 00893.HK) today announced that the Company has entered into a cooperative agreement with Sichuan Province Yanyuan County Pingchuan Iron Mining ("Pingchuan Iron Mining Company") and Sichuan Nanyu Information Technology Company Limited ("Nanyu") in relation to the development of the Dashanshu section, which is part of the Pingchuan Iron Ore Mine and has an area of approximately 5 square kilometres with estimated resources of approximately 50 million tonnes of iron ore.
The Dashanshu section is an avanadium-bearing titano-magnetite iron mine located in Pingchuan, Yanyuan County, Liangshan Prefecture, Sichuan Province. The section has approximately 50 million tonnes of iron ore of type 331, 332 and 333. The construction of the processing plant of the Dashanshu section is intended to start in June 2012. It is currently proposed that the Dashanshu section will commence trial production and commercial production in March 2013 and June 2013, respectively.
The Company, together with Pingchuan Iron Mining Company and Nanyu, will establish a joint venture for the purpose of development of the the Dashanshu section with initial registered capital of RMB100 million. The Company will have 51% equity interest in the joint venture. The joint venture will be responsible for the basic infrastructure construction works at the Dashanshu section, namely those relating to the supply of water, electricity and roads, the construction of the processing plant, including providing funds, and production and sale of the mine products from the Dashanshu section.
The transactions contemplated by the cooperative agreement represent an opportunity for the Group to further develop its current business by enjoying the potentially significant resource, as well as long-term steady production at the Dashanshu section through the joint venture. This will also allow the Group to generate income from the mine products produced at the Dashanshu Section.
Regarding the cooperative agreement, Mr. Jiang Zhong Ping, Chairman of China VTM Mining said, "Benefiting from the recent favorable national policies and the accelerated infrastructure development of the western region, the demand for iron ore is on the rise. So as to the capture market opportunities, the cooperative agreement helps to further expand our reserves and scale of production of vanadium-bearing titano-magnetite iron ore. Looking ahead, we will continue to seek mines and production facilities with growth potential to generate foreseeable and considerable returns to the Group, and strive to become an industry leader and key integrator in the mining industry."
About China Vanadium Titano-Magnetite Mining Company Limited
Listed on the main board of the Hong Kong Stock Exchange on 8 October 2009, China VTM Mining is the second largest operator and the largest non state-owned operator of iron ore mines in Sichuan province. The Group is primarily engaged in mining, ore processing, iron pelletising and the sale of iron concentrates, iron pellets and titanium concentrates to steel producers and downstream users of titanium-related products. The Group now owns and operates four vanadium-bearing titano-magnetite mines (namely the Baicao mine, the Xiushuihe mine, the Yangqueqing mine and the Cizhuqing mine), two ordinary iron ore mines (namely the Maoling mine and the Yanglongshan mine), five processing plants (namely the Baicao processing plant, the Xiushuihe processing plant, the Hailong processing plant, the Heigutian processing plant and the Maoling processing plant) and two iron pelletising plants, all of which are located in Sichuan province, a region with the most abundant vanadium-bearing titano-magnetite resources in China.
For more information on China VTM Mining, please visit: http://www.chinavtmmining.com
