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Chengtun Mining Accelerates its Presence in Global Resources

Chengtun Mining recently released its financial report, recording a rapid growth in both operating income and net profit. In 2016, the company achieved operating income of RMB 12.710 billion, up by 90.78% year-on-year, meeting its target of the year. The net profit attributable to shareholders of listed companies was RMB 189 million, up by 36.19% year-on-year and the net profit excluding non-recurring gains and losses attributable to shareholders of listed companies was RMB 267 million, up by 128.90% year-on-year.

The report shows that Chengtun Mining has steadily developed non-ferrous metal mining business and it is worth mentioning that the company expanded resource reserves at the bottom of the industry cycle and promoted the acquisition of 80% stake in Yunnan Baoshan Hengyuan Xinmao Mining Co., Ltd. According to the detailed survey report, Hengyuan Xinmao owns 12.0072 million tons of ore reserves. Also, the company recently announced its acquisition of 35% stake in Dali Sanxin Mining.

A more striking highlight of the report is that the company's metal trading business generated a sales revenue of RMB 12.135 billion, up by 99.39% year-on-year and a gross profit of RMB 375 million, up by 327.28% year-on-year. The company's metal trading business is mainly focused on the procurement of mineral raw materials and the purchase and sales of finished metal products for upstream and downstream enterprises of the nonferrous metal industry chain. According to the company, its procurement of mineral raw materials, especially zinc powder, has reached a considerable scale, and has some market influence. On this basis, the company has expanded value-added services to provide geological exploration, resource value assessment, raw materials mining, quality inspection, inventory management, price management and other services for the upstream and downstream enterprises of the industrial chain. These services cover the entire process from metal ore mining and dressing, to smelting, trading and circulation, and can provide comprehensive solutions with high technology content.

Chengtun Mining also made good progress in overseas business in 2016. The company expanded trade in overseas lead, zinc, cobalt and other non-ferrous metal mineral products and initiated investment in the annual 3,500-ton cobalt production project and the annual 10,000-ton copper utilization project in the Democratic Republic of the Congo in Africa. According to the company, it will continue to increase the pace of internationalization in 2017, properly carry out the copper and cobalt projects in the Democratic Republic of the Congo, further develop international trade in mineral products and value-added services, and strengthen quality resource reserves with a focus on cobalt, nickel and copper to lay a foundation for establishing a global presence in nonferrous metal resources and achieving the strategic goal of entering the global nonferrous metal resources market such as cobalt and copper, while contributing to expanding the company's business and improving its profitability.