Australian rare earths project "marking time" multi-pronged funding pressure

September 2013 , Sheng and rare earth resources and the Australian giant Arafura Resources Limited ( hereinafter referred to as the Arafura ) signed a " Memorandum of Understanding " , they intend to establish strategic cooperative relations . However, after six months, ie March 12 this year , Sheng and resource announcement of the latest developments in the matter , said the Arafura relevant in view of the feasibility study has not been completed , the company is not on matters related to cooperation with the signing of the memorandum of any binding legal agreement.

In this regard, Sheng and resources Securities Department , told reporters that Arafura been doing feasibility report , the two sides of the " Memorandum of Understanding " is valid for 2 years.

Arafura hand progression

September 11, 2013 , Sheng and Arafura Resources and signed a " Memorandum of Understanding " , the memorandum is intended to facilitate the two sides established a strategic partnership to provide a framework for negotiations . To this end , the two sides will be within the validity period of the MOU ( 24 months ) , reached through subsequent negotiations led to a substantive content of cooperation framework agreement.

That time, the announcement said Sheng and resources , such as cooperation in the future can be reached , will help improve the company 's rare earth industry chain , enhance the company's core competitiveness. Nolan Sheng projects and resources in a timely manner to the Arafura conducted to evaluate the results of the feasibility study work , so that after the successful completion of the feasibility study uncertainty , companies can participate jointly funded project to complete development Nolan .

Arafura is headquartered in Perth, Australia's mineral resources company , listed on the Australian Stock Exchange November 5, 2003 . The main business of rare earth ore exploration, mining and related chemical business . Arafura minority in 10 years, a world -class large reserves of rare earth projects pushed production stage companies . Nolan project which is being developed rare earth production is expected to meet 10% of global demand. In addition , due to the global supply is expected to remain scarce state Nolan include neodymium , europium, dysprosium, terbium , yttrium , including a variety of rare earth products will be considered " critical rare earth" , is expected to receive a huge shortage in global supply commercial interests.

Sheng saw enormous potential and resources of what Nolan project. Its announcement said the two sides hope that through extensive cooperation and practical cooperation to facilitate the production of the project , thus advancing its rare earth products to customers from Nolan distribution .

But in the six months after the signing of the memorandum , the bilateral cooperation has not been much progress . March 12 , Sheng and resource announcement said again : As of the announcement date , are actively promoting the work Arafura rare earth mine and processing and feasibility studies and other aspects of the rare earth separation plant to which it belongs . Given that the feasibility study report has not been completed , the company has not said a memorandum on cooperation in matters related to their entering into any binding legal agreement.

Multi- pronged funding pressure

Arafura hand , just Sheng and massive expansion of the external part of the resource .

In the announcement Arafura signed a " memorandum of understanding " on the same day , Sheng and resources also announced its subsidiary Leshan Sheng and RE Corporation ( hereinafter referred to Leshan Sheng ) capital increase shares of rare earth companies Leshan City, Sichuan Branch one hundred Rui new Material Co., Ltd. .

2013 , Sheng and resources of foreign investment 45 million yuan and Hubei TONGNING Mining Ltd, founded "Sheng and Resource Mining Investment Holdings Co., Ltd." in Shanghai Free Trade Zone , as a platform for foreign investment in mineral resources .

Earlier this year, the announcement said Sheng and resources , Leshan and intends to hold the price of 237 million yuan acquisition of overseas largest metal processing enterprises and 40% of the equity interest in a letter , the premium rate of 607.74 percent . Sheng and resources that can be acquired through this rare opportunity to enter the overseas market , the market share of high income changes brought overseas , while helping to improve the listed company 's rare earth industry chain.

Sheng and resources 3 March announcement that the company and the China Rare Earth Rare Ltd. , Institute of Rare Earth New Materials Co., Ltd., Sichuan Han Xin Mining Development Co., Ltd. to carry out strategic cooperation on rare earth industry consolidation , the development of rare earth ore , smelting separation , etc. signed a letter of intent. Cooperation will be " large-scale enterprise group established guidelines rare earth " as a guide , China is relatively rare and rare earth holding, Sheng and resources as the second largest shareholder , the parties jointly set up a joint venture as an integrated platform to follow market principles , the integration of rare earth Sichuan mining and smelting separation of business.


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