XTC Intends to Cooperate JXTC in Tungsten Ore Mining

Xiamen Tungsten Co., Ltd (XTC) announced the company signed a Strategic Cooperation Framework Agreement with Jiangxi Tungsten Holding Group Company Limited (JXTC) and Xiamen Sanhong Tungsten & Molybdenum Co., Ltd, involving two companies under JXTC, four companies involved in Xiamen Sanhong, mainly develops in tungsten ore, rare earth, and molybdenum ore mining.

JXTC is principally engaged in mining, smelting, and processing of rare metals such as tungsten, tantalum-niobium, rare earth and cobalt-nickel. The agreement involves three enterprises under JXTC. Among them, Jiangxi Hongda Mining Company owns an existing mining rights area of 1.407 square kilometers. At present, the proven reserves of mining area amount of 332+333 tungsten metal of 279,000 tons, and the average grade is 0.204%. The tungsten ore in the mining right is 168,000 tons. At present the mining of rare metals has realized the extraction yet.

Also, Shanghang Nonferrous Metal Industry Development Company owns rare earth mine in Fujian. On June 3, 2009, it obtained the exploration permit issued by the Ministry of Land and Resources, with an area of 47.15 square kilometers, the current exploration rights are reserved. After nearly four years of exploration, exploration work was completed by the end of 2012. The estimated amount of resources of 331+332+333 grades is 120 million tons, and the rare earth resources are 138,000 tons, with an average grade of 0.115%.

Another company involved is Jiangxi Tungsten Cobalt Company is currently smelting and processing. The products are cobalt sulfate, cobalt chloride, cobalt carbonate, cobalt powder, cobalt trioxide, nickel sulfate, electrolytic copper, etc. The current production capacity of cobalt metal is 3000 to 4000 tons, 1000 tons of nickel metal and 1,500 tons of copper.

Xiamen Sanhong, one of the three parties to the agreement, is mainly engaged in investment and mining of tungsten mine. Jiangxi Jutong Company owns two mining warrants for tungsten deposit. Within the scope of the two exploration rights, the newly discovered WO3 metal amount of 932,300 tons, with an average grade of 0.176%.

According to the agreement, XTC and JXTC will carry out joint ventures and cooperation, strengthen contacts of business units of each tenure. When the conditions are ripe, a joint venture company will be established and jointly develop the tungsten ore mine.

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