Macro Environment

The fast economic growth in the world especially in China pushes the demand for mine resources in the nonferrous metals industry. Since 2003, the continuous price increase of nonferrous metals in the world has been driven by the fast growth of exploration and mining in nonferrous metal mines. There is severe competition in the nonferrous metals industry. Therefore, the government of China has strengthened the management for mine exploration and mining of nonferrous metals thus the exploration and mining licenses of nonferrous metal mine has been more difficult to receive. The fluorspar mine owned by the company belongs to metalloid mine. Fluorspar is the basic raw material of the fluorine chemical industry and it is also the auxiliary raw materials in iron and steel industry. The company also owns nonferrous metals mines which have a huge potential in exploration. In case of severe competition of seizing mine resources, it is of far reaching importance that the company owns metalloid mine and nonferrous metal mines.