China Natural Resources Inc, listed on the Nasdaq capital market (code: CHNR), is one of the leading resources group in China. It is principally engaged in the exploration, exploitation, processing of minerals domestically and internationally; and the sale of a wide range of natural resource products and related industrial materials. CHNR's high quality assets and operations span geographically across various regions in China, such as Anhui, Guizhou, Hainan, Guangdong and Inner Mongolia; and overseas, such as Madagascar, which provides a solid foundation for the Group to explore overseas mining opportunities. Headquartered in Shenzhen, China, with an office in Hong Kong, CHNR currently has near 1550 employees worldwide in the operations we manage.
Ferrous and nonferrous metals and related industrial products
Our two zinc-iron mines operations in Anhui are under commercial production, providing a constant supply of iron concentrate, zinc concentrate, micaceous iron oxide powder. In 2008, CHNR's turnover reached approximately RMB 846 million, while its net profit exceeded RMB 76 million. The production outputs of zinc concentrates, iron concentrates, micaceous iron oxide grey powder were total 795 tons, 54,150 tons, and 1,025 tons respectively. Our copper smelting plant in Inner Mongolia provides blister copper, gold, silver and sulfuric acid to our customers. In 2008, the production outputs of blister copper, gold, silver and sulfuric acid from our copper smelter were total 16,084 tons, 104 kg, 14,073 kg and 93,830 tons respectively. In September 2009, CHNR disposed of its copper smelter plant in Inner Mongolia in order to strengthen the working capital and concentrate the resources on the core coal, iron and nonferrous metal mining businesses.
Resources exploration remains a crucial part of CHNR's work. Only by continuously identifying and acquiring mineral assets with high mineral potentials as well as conducting professional scientific exploration on these sites can we fulfill our objectives of enhancing existing businesses while expanding our portfolio in near future. So far, we have invested a large amount of capital and human resources in our exploration work, covering 14 sites in Anhui, Hainan and Guangdong provinces, and the initial reports never fail to excite us with encouraging discoveries of prospective metallurgic deposits and other precious earth treasures.
Energy resource product: Coal
With aspirations to become the leading player in the natural resources field in China, CHNR has made significant steps to realize our development plans in the coal industry, which has long been demonstrating huge market potentials. By making two strategic and visionary acquisitions, the group will be entitled to one exploitation permit and one exploration permit to two coal mines in Guizhou. So the annual production capacity is expected to reach 600,000 tonnes in 2010 and 1,500,000 tonnes in 2012.
Future Development
CHNR's current achievements relied on a series of successful corporate moves of merger and acquisition, and in the foreseeable future, we will continue this strategy to appropriately focus and invest our resources, as well as to grow our businesses. By ever strengthening technologies and expertise in the mining industries, we pledge to provide high quality products at reasonable costs to our customers, while maximizing our shareholder value at the same time.
Financial Performance
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