Asian Metal visits Yiyang Huachang Antimony Industry and Hunan Zhenzhou Mining Group

On August 16-17, 2012, Annabella Xu, antimony market analyst of minor metal department and Li Xin, manager of marketing department from Asian Metal visited Yiyang Huachang Antimony Industry and Hunan Chenzhou Mining Group and were given a welcome.

On the morning of August 16, Annabella Xu and Li Xin were picked up by Huachang Antimony Industry at the airport. Mr. Wang Jiangen, the general manager of Huachang offered a gracious reception. After listening to the in-depth analysis and feedback of current market trend from Wang Jiangen, visitors from Asian Metal had an in-depth discussion with him and reached a consensus that most producing enterprises were suffering losses and there will be little room for antimony prices to go down further, though the demand from both domestic and foreign markets remains sporadic.

On the afternoon of the same day, Asian Metal visited the antimony trioxide plant of Huachang Antimony Industry. Clean and tidy workshop, lucid pool in front of the plant and fresh green hills, all demonstrate the fresh style of an advanced antimony trioxide plant.

After wholly owned restructure, Hunan Huachang Antimony Industry Co., Ltd. became a private enterprise named Yiyang Huachang Antimony Industry Co., Ltd., and its predecessor Yiyang Antimony Converter which was founded in 1965. After over 40 years of smelting process, the company has over RMB10 million of gross assets and 10,000t of annul capacity. The company acquired White Dragon Entity and related products in June, 2005. In 2007, it initially acquired ISO 9002 International Quality System Certification and was listed as the qualified supplier for antimony exports by the Ministry of Commerce of PRC. Its leading product, Huachang antimony trioxide, is sold to more than 20 countries and regions, such as Japan, Europe, America and Southeast Asia.

On the morning of August 17, Annabella, Xu, Li Xin and Wang Jiangen drove to the headquarters of Chenzhou Mining Group which was located in Guanzhuan town in Huaihua County and welcomed by Mr. Li Yi, the sales manager of Chenzhou Mining Group. Both parties exchanged the information in antimony market. Li Yi offered many sincere advices and suggestions to Asian Metal which was treated as an impartial third part in the market, hoping that both parties could keep close touch to guide the market to run regularly.

After that, Mr. Li Zhongping, the general manager of Chenzhou Mining Group welcomed visitors from Asian Metal after hosting the fifth anniversary celebration of the listed company. Mr. Li Zhongping represented the scarcity of antimony as the strategic resources, and exhaustion of it after years of exploitation as well as its unrecoverable property. According to current speed of exploitation and consumption, antimony resources could be used for another 15-20 years. However, as an irreplaceable material to certain sectors, strategic measures are urgently needed to make sure sustainable exploitations and consumptions for antimony.

At noon, Mr. Li Zhongping, Mr. Li Yi, from Chenzhou Mining Group, Mr. Wang Jiangen and Mr. Yan Weiping from Huachang Antimony Industry, Annabella, Xu and Li Xin from Asian Metal had lunch together. After that, Mr. Li Zhongping, Mr. Li Yi, showed visitors around the photo exhibition of the fifth anniversary of going public for Chenzhou Mining Group, and represented the development history of the company. Every photo, either black-and-white or colored, recorded the golden age of the company‘s development.

The predecessor of Hunan Chenzhou Mining Group Co., Ltd. was Xiangxi Golden Mine under Ministry of Metallurgical Industry, and was located in Yuanling County, Hunan province, having over 130 years of gold mine exploitation history. Woxi mining property in the headquarters was one of the major bases for gold production in early stage. The company had become one of the ten largest gold mine development enterprises in China, and the second largest antimony mine development company as well as a major tungsten ore development company. Comprehended with geographical prospecting, mining, dressing, smelting, transport, mechanical maintenance and manufacture as well as intensive process of metals, the company has advanced technologies around the globe for dressing, smelting and fine splitting of gold and antimony ores. It has an annual capacity of 30t for gold purification line, and 20,000t for antimony ingot, 20,000t for antimony trioxide and 5,000t for APT, and the company was the standard gold ingot supplier and one of the first members of Shanghai Gold Exchange. It is the only qualified antimony and tungsten products supplier for exports who at the same time has export permit for those materials. The company acquired ISO9001, and 2008 SO14001Quality Management System Certification, 2004 Environment Management System Certification and Ⅲsafety standard acceptanc. The gold ingot, antimony ingot, antimony trioxide and APT with "Chenzhou" brand are sold well in domestic market as well as the markets in Europe, America and Southeast Asia in view of the high quality.