On Dec 23, 2010, Sinochem Lantian and Hunan Zhuwanyou Industry Co., Ltd. (hereinafter referred to as Zhuwanyou) reached an agreement that Sinochem Lantian will hold 51% shares of each subsidiary of Zhuwanyou, Hunan Xinyuan Mining Co., Ltd. (hereinafter referred to as Xinyuan Mining) and Yizhang Hongyuan Chemical Co., Ltd. (hereinafter referred to as Hongyuan Chemical). The transaction was completed on Dec 31, 2010.
Xinyuan Mining is in possession of the largest fluorspar mine in China with 26.21 million tons in reserve. This co-operation is a milestone for Sinochem Lantian to acquire resources in fluorine chemical industry. The control of fluorspar resources is a crucial link to improve and develop industrial chain of fluorine chemical industry; it is also the guarantee for sustainable development of fluorine chemical industry as well as an important foundation for co-operation with international fluorine chemical enterprises.
After transaction, follow-up projects will include dry-method aluminum fluoride, fluoride salt, AHF, sulfuric acid production line, cogeneration, railway line construction, etc. All these projects will build Chenzhou into a competitive and influential fluorine chemical base with advanced technology, first-rate management and environmental protection. Besides, aluminum fluoride project is an important opportunity for Sinochem Lantian to enter inorganic fluorine chemical industry, which will not only enrich product varieties but also blaze a new trail for fluorine chemical industry.
So far, Sinochem Lantian is in possession of more than 30 million tons fluorspar with market share rising from 5% to 38% according to purity quotient. The fluorspar reserves provide sufficient upstream resources as well as strong support for Sinochem Lantian to become an influential enterprise with a complete industrial chain, strong innovative ability, lean management, good economic returns and global competitiveness.