On 23 May 2019, An Equity Transfer Agreement was signed between Guizhou Kailin Group and JCHX through which JCHX acquired 90% of equity in Liangchahe Mine Development Co., Ltd, subsidiary of Kailin Group in way of open bidding, which represented a major breakthrough for JCHX in mineral resources development.
Kailin Group owns mining right over Liangchahe (south) phosphate mine in Kaiyang County of Guizhou province. According to the Feasibility Study issued by Hebei Universal Engineering Co., Ltd., resources within Liangchahe territory is up to 21.3341 million tons, with average grade of P2O5 was 32.65%, designed capacity of 0.8 mt/a; EBITA is estimated to be 80.8524 million RMB, ROI of 11.94%, and profit-tax average to investment rate 19.65%.
Since establishment, JCHX took great pains to develop mine construction and contract mining services, depending on which it has built up strong and healthy relationship with and won great support and trust from many leading mining corporations. In recent years, JCHX has made great efforts in extending business towards whole industry chain. As one of the core business in the future, resources development shall be the key factor for maintaining profitability in the long run.
As a leading company in phosphate sector, Kailin Group has great advantages in resources development, while JCHX also made great achievements in mine construction and contract mining services. The cooperation between two sides previously in Yongshaba Mine, Qingcaichong Mine and Maluping Mine combined both side’s advantages and was a win-win solution.
The equity transfer achieved this time for Liangchahe Phosphate Mine will furtherly strengthen the cooperation, both sides will work together for achieving future development and more breakthroughs.
