Welcome!

News Feed Item

China Zhongsheng Resources Holdings Limited Aquires 95% of Equity Interests of Luxing Tianium

Seeking Growth Opportunities Through Proactive Change,in a Pursuit of Dual Iron-titanium Development Strategy and Optimized Product Structure with Major Breakthroughs into the Titanium Concentrate Market and Effective Expansion of Ilmenite Capacities


Hong Kong, Feb 8, 2013 - (ACN Newswire) - China Zhongsheng Resources Holdings Limited ("Zhongsheng Resources" or the "Company", stock code: 2623) is pleased to announce that, Shandong Ishine entered into a conditional sale and purchase agreement on 19 December 2012 to acquire 95% of the equity interests of Luxing Titanium at a consideration of RMB20.9 million (the "Acquisition"). The Acquisitions expected to be completed in February 2013. According to the condition of renewal of mining permits, Zhongsheng Resources intends to rely on the resources and capacity, to cautious actively expand the Company's development and processing capacity, and to vigorously develop ferrotitanium mining and processing capacity to actively enter into ilmenite concentrate market, therefore to enrich the product mix of the company which will built a solid foundation for Improvements of profitability.

According to the assessment by the Valuer, the market value of the mining right of the Luxing Titanium Ilmenite Mine amounted to approximately RMB260 million as at 30 September 2012. Luxing Titanium possesses a processing line with processing capacity of 1.2Mtilmenite ores per annum, and obtained a new mining licence with an approved annual mining production scale of 1.5 Mt. The term of the mining license is 9 years expiring in December 2021.

After completion of the Acquisition, the Group intends to invest a total sum of approximately RMB3.8 million into a technology improvement plan. The said technology improvement plan will enlarge the annual processing capacity of ilmenite ores of the processing line of the Luxing Titanium Ilmenite Mine as well as enable the processing line to process the tailings with titanium content currently possessed by Luxing Titanium. The Group intends to complete the said technology improvement plan by May2013 and upon completion, the annual processing capacity for ilmenite ores of the processing line of Luxing Titanium Ilmenite Mine will be increased to approximately 1.5Mt ilmenite ores, which will allow the Group to produce approximately 100,000 tonnes of 57% iron concentrates and approximately 16,000 tonnes of 46% titanium concentrates per annum and the processing capacity for tailings of the said processing line will allow the Group to produce approximately 20,000 tonnes of 46% titanium concentrates per annum.

Furthermore, as at the date of this announcement, the net proceeds received by the Company from the IPO were approximately HK$129.3 million of which approximately HK$110.7 million had remained unused as at the date of this announcement. As to the depression of Iron ore concentrate market in 2012, the board and management has pertinently decided to alter the use of the funds raised based on the change of global and domestic market, in order to provide better return to investors. The proposed use of such IPO proceeds as provided in the Prospectus and the amount utilised for such use up to the date of this announcement, the unutilised amount as at the date of this announcement and the amount to be reallocated to: (1) commencement of operation of Zhuge Shangyu Ilmenite Mine; (2) commencement of the Qinjiazhuang Ilmenite Project; (3) technology improvement plan to increase annual processing capacity of Luxing Titanium Ilmenite Mine; and (4) general working capital.

Mr. Geng Guohua, Executive Director and COO, said, 'China is bound to build a large number of coal-fired and nuclear power stations in the coming years to solve its energy challenges, as well as invest heavily into sea water desalinization given the severe water shortage in its coastal cities. Robust demands from those key sectors will support the sustained expansion of market volumes for Titanium products. As China rises to become the world's second largest Titanium market second only to the US in the near future, it will demonstrate market characteristics similar to Japan where non-aviation civil use dominates, rather than the US where Titanium alloy for aviation use takes up over 50% of market share.'

Nevertheless, as China embarks upon autonomous manufacturing of large civil aircrafts and new models of fighter jets, demand for aviation-grade titanium with rise continuously. Large civil aircrafts and 4th-generation fighter jets are manufactured with 10-20 kinds of hi-performance titanium alloys in varieties ranging from rods, plates, tubes, cast products and fasteners. China's need for a powerful blue-sea Navy would also underscore titanium's essential use. On top of this, titanium is used for civil purposes in large quantities in the chemical, metallurgical and power industries as structural materials for pressurized vessels, as well as daily necessities ranging from sports and recreational goods, medical and human implant materials, to eyeglass rims and arts and crafts, giving the material tremendous market potentials.

China Zhongsheng Resources Limited is optimistic towards the Titanium market. By targeted periodic composition, we expect the company to further promote the processing capacity of iron ore. In 2013, Luxing Titanium Ilmenite Mine will able to produce approximately 100,000 tonnes of 57% iron concentrates and approximately 30,000 tonnes of 46% titanium concentrates, Zhuge Shangyu Ilmenite Mine will be able to produce approximately 40,000 tonnes of 57% iron concentrates and approximately 40,000 tonnes of 46% titanium concentrates, and Qinjiazhuang Ilmenite Project will be able to produce approximately 100,000 tonnes of 20%-30% titanium concentrates. The recent business expansion will be beneficial for the group to implement business strategy and to enhance financial strength. Zhongsheng Resources will fully exploit the opportunity emerge from the recovery of macroeconomics and the demand of national aviation and space industries, to optimize investment and production decision, in order to strive for steady and quality return to shareholders.

About China Zhongsheng Resources Holdings Limited

Headquartered in Shandong Province, the PRC, China Zhongsheng Resources Holdings Limited is the largest private-owned iron ore producer in Shandong. It is principally engaged in iron and ilmenite ore exploration, iron ore mining and iron ore processing to produce iron concentrates, and sell products directly to iron pellets or steel manufacturers. With a strong historical growth performance record, significant iron and titanium ore reserves, and stable relationship with reputable customers, we are prepared to seize every opportunity to expand our business to titanium ore with the guarantee of iron business. The company greatly concern about environmental protection and governance. In March 2011, we were selected as the first batch of "State Green Mining Pilot Units" by the Ministry of Land and Resources, which is one of the only five ferrous metal mines obtaining this honor. In October 2009, we were accredited with Safety Standard Second Grade Corporation Certificate issued by Shandong Province Administration of Work Safety.



Copyright 2013 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyer belt between the Software Factory and production stages. Artifacts are m...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, d...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...