China Shen Zhou Mining & Resources announced Monday the signing of a Memorandum of Understanding calling for the merger and acquisition of several fluorite and barite mining and processing companies in the Guizhou province of south central China. China Shen Zhou, the biggest mining and mineral processing company in northern china, considers the acquisition and integration of high-quality fluorite resources as a major part of their growth strategy, which falls in line with the Chinese government’s encouragement of the merger and integration of fluorite mining. China has recently increased the barriers to the entry of new players in the fluorite mining industry. China Shen Zhou has looked at acquiring a number of fluorite and barite mining companies.
The CEO of China Shen Zhou, Ms. Xiaojing Yu, commented on the planned acquisitions: “The Company has always believed that fluorite, as a widely used yet scarce strategic resource, will be in high demand given continuing economic development in China. China’s Wuling mountains are very rich in resources of fluorite and barite and possess excellent ore quality with low levels of phosphorus and sulfur. Barite is similar to fluorite as it is also a widely used diminishing resource. Because of China Shen Zhou’s advanced knowledge of the methods of separation of fluorite and barite ore and of methods of deep-processing of barite, the acquisitions of the Wuling mountain fluorite and barite resources will greatly enhance the Company’s reserves, laying the foundation for China Shen Zhou to become one of the largest fluorite mining and processing companies in China. Meanwhile, we will use the acquired barite resources to greatly improve the Company’s mining, processing and production capabilities.”
Barite is a key source of barium, with China ranked #1 in the world for barite reserves and production. Barite powder is used in the oil and gas industry, and barium sulfate is widely used in coatings, paints, inks, daily chemical products, textiles, papers, and other products. China Shen Zhou Mining & Resources, through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead, and copper in China.
Negotiations on the acquisitions are expected to be finalized within the next 60 days.
For additional information, visit the company’s website at www.chinaszmg.com
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