China Shen Zhou’s Recent Acquisitions Make Company China’s Largest Fluorite-Barite Deep Processing Center
BEIJING, Feb. 10, 2012 /PRNewswire-Asia-FirstCall/ — China Shen Zhou Mining & Resources, Inc. (“China Shen Zhou”, or the “Company”) (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that its recent acquisitions of three mining companies in Guizhou province position the Company as China’s largest fluorite-barite deep processing center.
Since the beginning of 2012, China Shen Zhou has acquired, through its subsidiary, Xiangzhen Mining Ltd. (“Xiangzhen”), 60% ownership of the equity of Wuchuan Dongsheng Mining Company Ltd., Qianshi Resources Development Company Ltd. and Meilan Mining Company Ltd., all located in the Wuling mountain area in Guizhou Province.
The acquisitions of these three companies were strategically timed, as China’s State Council has issued a number of articles further promoting the economic and social development of Guizhou Province and has also issued a series of tax, investment and finance policies intended to support companies working in the energy, resource processing, non-metallic chemical and barium carbonate industries in this region.
China Shen Zhou is building a barium salt and fine chemical production line and a fluorite-barite ore processing production line with 200,000 metric tons annual processing capacity in the Wuling mountain area. The fluorite-barite ore separation and processing project on a smaller scale has already been put into operation and acknowledged as a national leading project. China Shen Zhou is planning to build a barium salt and fine chemical production line and fluorite-barite ore processing production line of the same scale in Tongren area of Guizhou province. The three newly acquired companies have large prospective reserves of fluorite-barite mining resources, which are a diminishing, non-renewable resource. As market demand increases, the value of these fluorite and barite resources is expected to become more and more significant. Through these transactions, the Company will become China’s largest fluorite-barite deep processing center and will be well positioned to enter the high-end fluorine chemical market.
SOURCE China Shen Zhou Mining & Resources, Inc.