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Zunyi Molybdenum & Nickel Mining Enterprises Are Still in Suspension Status

According to the 2015 mid-year report of Tiancheng Holding, because Guizhou Province is still enforcing policy regulation & environmental protection policy for molybdenum & nickel mining industry, currently all molybdenum and nickel mining enterprises across Zunyi City are in close-down status.

Within the report period, Tiancheng Holding completed annual inspection of exploration right for its subordinate mining subsidiaries according to schedule. The company’s subordinate mine enterprises strictly adhered to uniform arrangements and requirements of the provincial and municipal government departments to continually strengthen environment treatment work and mine safety construction, and make all preparations to wait for successful operation start of the mines.

It has been learned that due to accidents in molybdenum & nickel mines in the surrounding area of Zunyi, in 2013 the General Office of Zunyi Municipal People’s Government printed and distributed the “Zunyi Metal & Non-metal Mine Rectification Close-down Work Plan”, the Plan required that all new mine projects that are unable to meet requirements on minimum mining scale and lowest service year would be denied safety license; metal & non-metal mines with postponed license application plus all new, upgraded, expanded projects must conform to relevant national and provincial industrial policies, those not up to standards would be uniformly denied safety license and approval.

According to requirements of the “Zunyi Industrial Development Plan for the Twelfth Five Year Plan Period” published by Zunyi Municipal Industry and Energy Commission and Guizhou Provincial Government Development Research Center in November 2010, this region is dedicated to vigorously developing molybdenum & nickel refined and deep processing. Departing from molybdenum & nickel mineral resource advantage in Zunyi County and Honghuagang District, it would forcefully drive forward integration of molybdenum and nickel resources, highlight integrated development, vigorously develop molybdenum & nickel refined and deep processing products, concentrate efforts to properly handle the construction of Honghuagang District molybdenum & nickel alloy factory, strive to increase molybdenum & nickel alloy production capacity to 10000 tonnes during the “Twelfth Five Year Plan” period.

Meanwhile, it is required to build molybdenum & nickel processing industrial chain covering molybdenum & nickel mine —Molybdenum oxide —Ammonium molybdate —Molybdenum powder —Molybdenum strip, molybdenum bar —Molybdenum alloy —Molybdenum sheet—Molybdenum wire and molybdenum & nickel mine —Metal nickel —Nickel sulfate —Nickel iron alloy —Nickel sheet —Nickel powder —Fine nickel powder —High purity super fine nickel powder.

In 2011, Tiancheng Holding entered mineral product mining, processing and operation fields, it was designated by the Zunyi Municipal Government as the integration platform for Zunyi’s nickel & molybdenum mining industry, and was incorporated into Zunyi Municipal Government’s industrial development plan for the “Twelfth Five Year Plan” period. The company progressively acquired equity and mining rights of Zunyi Yufeng Mining, Zunyi Tongcheng Mining, Zunyi Hengsheng Mineral Product, Guizhou Bohao Mining, Zunyi Tianyi Industrial Trade etc in full amount, and signed agreement on intention of transfer with a number of mining companies. About nickel and Molybdenum mines currently held by the company, its mining zone covers about 30 sq km, ore reserve is 3.1244 million tonnes, nickel metal volume is 95,600 tonnes, molybdenum metal volume is 154,900 tonnes, nickel’s average grade is 3.06%, molybdenum average grade is 4.96%.

The molybdenum & nickel mine rectification starting in 2013 plunged business in the entire Zunyi region into a standstill, the targets involved in the Twelfth Five Year Plan in this region can hardly be accomplished, Tiancheng Holding’s mine development progress also suffered impact.