Xichou Metal Mineral Resources Integration and Development Project

Project Name

西畴县金属矿产资源整合开发项目

Xichou Metal Mineral Resources Integration and Development Project

Project Industry

New Material Industry

Project Site

Lotus-Pool Town, Xingjie Town and Xinmajie Town in Xichou County

Project Overview

Xichou County is located at the northern edge of the north-to-Vietnam ancient land, which belongs to the western part of the southeast Yunnan fold belt in South China fold system,and is also part of the eastern part of the northern arch of Bozhu Mountain of the Wenshan-Funing fold system, as well as the southern end of the middle part in the Mount Wen and Malipo fracture zone. The geological structure in the region is complex, and the main mineral-bearing strata are composed of Cambrian Dazhai Group of lower stratum, Cambrian Tianpeng Group of mid stratum and Devonian Gumu Group. Polymetallic associated minerals like lead, zinc and copper are the main components of the mines.

The project zone is located in the metallogenic belt in the southeastern Yunnan, but this area is little exploited, so it has a huge potential. The resources are mainly distributed in Lotus-Pool Town, Xingjie Town and Xinmajie Town, and the mines are relatively concentrated. Therefore, it is a preferential choice to integrate the county's metal ore resources, manage them in a unified way and exploit them with a scientific plan.

Project Construction Content

Construction Scale: 19 metal resources development rights in the county, including 3 mining rights covering a mining area of 1.8656 square kilometres, and 16 exploiting rights with an area of 152.91 square kilometres. It can be developed in different ways according to situations in different areas and mineral species.

Construction Duration: 2020-2022

Supporting Conditions

In accordance with the assessment and verification of an independent third party led by China Mining Association, the current reserves are: 715,000 tons of metal volume in lead-zinc ore ,with a prospective reserve exceeding 2 million tons; 46,000 tons of metal volume in wolfram ore, with a prospective over-100,000-ton reserve; 24,000 tons in antimony ore, a prospective reserve over 100,000 tons; 39,500 tons in copper ore metal; 350 tons of silver ore metal, with prospective reserves expected to reach more than 50,000 tons; fluorite ore is expected to reach 1 million tons volume and barite ore is expected to be about 3 million tons.

The metal resources development rights mainly belong to Lotus-Pool Town, Xingjie Town and Xinmajie Town in Xichou County, Wenshan Prefecture, Yunnan Province. The region has convenient transportation, as the mine is accessible to the Wentian secondary road. The mine is 400 km to the provincial capital Kunming, 30 km to the prefecture capital Wenshan, 70 km to the national Malipo Tianbao port, and 60 km to the Yanshan entrance of Guangzhou-Kunming Expressway. The region has complete power and water conservancy facilities, which can support the construction needs of mining, smelting and processing of metal. The highway from Wenshan to Tianbao Port and that of Xingjie to Nasa is now under construction.

Investment Estimate &

Fund Raising

Investment Estimate: RMB 1 billion.

Fund Raising: Self-raised by the enterprises. Xichou County can provide relevant assistance for enterprise financing.

Preferential

Policies

Relevant preferential policies including the Opinions of the People's Government of Yunnan Province on Effectively Resolving the Difficulties in Attracting Foreign Investment and Promoting its Growth, the Notice of the General Office of People's Government of Yunnan Province on Printing and Distributing Methods for Promoting the Provincial Major Investment Attraction Projects in Yunnan Province, the Implementation Measures for Wenshan Prefecture to Strengthen the Talent Attraction by Investment Attraction (Interim), and the Measures for Promoting Major Projects in Wenshan Prefecture, "One policy for one enterprise" issued by Xichou County, and other policies are applicable.

Market Prediction (Analysis)

In recent years, due to the high domestic price, low degree of resource guarantee, and a large proportion of developed and utilized resources in reserves, it is difficult to produce ore in large quantities, which has become the bottleneck of the development of the metal mining industry. However, with the acceleration of urbanization, the required metal minerals have huge market potential and broad development prospects. Especially with the support of government policies and plans, the improvement of the economic situation, the promotion of consumption growth, and the development of industrial concentration brought by the integration of mineral resources, the rapid development of the mineral resources market will be driven.

Profit Model and Preliminary Benefit Analysis

With the integration of metal mineral resources in the county and standardized exploration and mining to scientifically develop and utilize mineral resources in accordance with the standards of green mines and harmonious mines, it is estimated that the annual output value can reach more than RMB 200 million, which will produce considerable economic and social benefits.

Risk Analysis

There may be some risks in national macro-policy regulation, production technology, personnel safety, and operator management.

Cooperation Pattern

Joint venture, cooperation, and sole proprietorship

Contact Information

Contact Authority: Investment Promotion Bureau of Xichou County

Contact Person: Qiu Zhengli

Tel.: 0876-7622886   13887677311

E-mail: 51918302@qq.com