Company Anticipates Approximately $24 Million Increase in Fluorite Segment Revenues in 2008
BEIJING, Nov. 30 /Xinhua-PRNewswire-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (OTC Bulletin Board: CSZM), a leading company in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in the PRC, today announced the Company has finally completed its manufacturing capacity expansion project for 300,000 metric tons of fluorite ores extraction and 200,000 metric tons of fluorite ores processing. With the current overall manufacturing capacity, the Company anticipates an approximately $24 million increase in its fluorite segment revenues in 2008.
On November 28th 2007, a grand ribbon-cutting ceremony was held in the Sumo Chagan Aobao Fluorite Mine, located in Siziwangqi, Inner Mongolia Autonomous Region. All the Senior Management members of the Company as well as senior governmental officials from Wulanchabu City and Inner Mongolia Autonomous Region participated in the celebrating ceremony, including Mr. Chen Ruiqing, Vice Director of the Standing Committee, National People’s Congress for Inner Mongolia Autonomous Region; Mr. Xue Peiming, Vice Mayor of Wulanchabu City; Mr. Xiao Wanshou, General Secretary of the Siziwangqi Administration and Mr. Jiang Fulin, General Secretary of the National Fluorite Association.
Mr. Chen Ruiqing delivered an important speech, presenting warm congratulations on the Company’s great achievements and expecting the Company to develop more quickly and make more contributions for the regional economy.
Jessica Yu, CEO for China Shen Zhou Mining & Resources commented, “We are very excited to announce the completion of the manufacturing capacity expansion project in the Sumo Mine. With the new large-scale processing plant coming on line, the Company expects to increase its manufacturing capacity significantly: the extracting capacity will be expanded to 300,000 metric tons and processing capacity to 200,000 metric tons annually. We plan to extract 300,000 metric tons of fluorite ores and manufacture 120,000 metric tons of refined fluorite powder in the next year. Therefore we anticipate the fluorite segment revenues will increase by approximately $24 million in 2008.
Ms. Yu added, "We are even more committed to focusing on the expansion strategy and increasing our production capacity, facing the favorable pricing environment and the strong market demands for our fluorite products in the Chinese market. As proven in the authoritative evaluation report by SRK Consulting, the Sumo Mine has a total of 8.14 million metric tons of fluorite resources, which is believed to be the largest fluorite reserves in northern China as well as one of the top single fluorite mines with high purity and grade in Asia. In view of the abundant reserves, we have built the largest fluorite processing plant with the newest and most advanced equipments in northern China. All these advantages will contribute greatly to our profitability in the future and serve as a solid foundation for the Company’s smooth and rapid development in the longer term.
Finally Ms. Yu pointed out, "Having the largest amount of fluorite reserves in China, we intend to enter the high margin, rapidly growing downstream market for fluorite chemicals in 2008. We believe the Chinese fluorite chemicals market presents a growth potential for us in the next few years. Refined fluorite powder is important and necessary raw materials for all related fluorite chemicals products. We aim to take advantage of our fluorite reserves and enhance the Company’ profit margins. We are confident such initiatives will maximize shareholders’ value and position the Company well for long-lasting development. All in all, as the largest fluorite extracting-and-processing company in northern China, we are determined to develop at a faster speed and gain more market share in the fluorite segment market over the next few years.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc. conducts all of its business through its subsidiary, American Federal Mining Group ("AFMG"), which, in turn, conducts its business through its Subsidiaries. The principal business of AFMG is the exploration, development, mining, and processing of fluorite, zinc, lead, copper, and other nonferrous metals in the PRC. AFMG has its principal areas of interest in the PRC: (a) fluorite exploration and extraction in the Sumochaganaobao region of Inner Mongolia Autonomous Region; and (b) zinc/copper exploration, mining and processing in Xinjiang Uygur Autonomous Region; and (c) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia Autonomous Region
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