Chinalco Gongyi to Ensure Supply of up to 250K tons of Bauxite per Year
GONGYI, China, Jan. 9 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has formed a supply partnership for bauxite with Aluminum Corporation of China's Gongyi Division ("Chinalco Gongyi"), which produces bauxite from a mine it owns in Gongyi City of Henan Province.
The bauxite mine has an estimated reserve of 12 million tons, with an average alumina grade of over 70%, and an estimated life of 25 to 30 years. Under the partnership, Chinalco Gongyi will ensure the annual supply of 150,000 to 250,000 tons of bauxite, with an average alumina grade of no less than 75%, to Gengsheng as raw materials for refractory and fracture proppant products. Gengsheng will pay a slightly-below-market price for Chinalco Gongyi's bauxite.
"This long-term strategic supply partnership is meant to ensure the stability of our raw material source for the foreseeable future," said Mr. Shunqing Zhang, Chairman and CEO of the Company. "Chinalco's bauxite mine is about 15 kilometers (9.3 miles) from our manufacturing facilities in Gongyi and we are very pleased to secure a favorable price for their products. In light of the tumultuous commodity prices over last year, we see this partnership as a strong positive for the long-term sustainability and growth of Gengsheng."
Aluminum Corporation of China (NYSE: ACH) is the world's second largest alumina producer, with assets of RMB 377.7 billion ($55 billion) as of June 2008, according to its Website. It is the parent company of Chinalco Gongyi.
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd. For more information about the Company, please visit http://www.gengsheng.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Gengsheng Minerals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company's ability to meet its projected output for the term of the supply contract; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
China Gengsheng Minerals, Inc.
Mr. Shuai Zhang
Investor Relations
Tel: +86-371-6405-9846
Email: shuai298@126.com
Grayling Global
Valentine Ding
Investor Relations
Tel: +1-646-284-9412
Email: vding@hfgcg.com
