The core product of China Mining is molybdenum ore, which is processed to produce molybdenum concentrate. Molybdenum concentrate can be further refined to produce ferromolybdenum. Molybdenum ore exploited from China Mining’s quality mines has an average grade of 0.276%, which is among the highest globally.

With an exceptionally high melting point, molybdenum products are used as an alloy agent in stainless steels, cast irons and high-temperature super alloys, to enhance hardness, strength, toughness, anti-corrosion as well as wear and tear resistance.

The ability of molybdenum to withstand extreme temperatures without significantly expanding or softening makes it useful in applications that involve intense heat, including the manufacture of aircraft parts, electrical contacts, industrial motors, and filaments.

Molybdenum Mine Ore Reserve & Mineral Resource

Category	Tonnage (kt)	Grades (%) Mo	Contained Metals (t) Mo
Proved	10,350	0.364	37,600
Probable	12,400	0.203	25,200
Total Ore Reserve			62,800
Additional Resources			11,600
Total Mineral Resource			74,400

Sources: BDASIA Technical Assessment Report in China Mining Resources Circular, May 23, 2007

China Mining predominantly sells ferromolybdenum to stainless steel manufacturers globally. In addition, ferromolybdenum is extensively applied within the energy sector. We foresee that the molybdenum business will remain as one of our key revenue drivers due to the continually growing market demand.

In addition to the molybdenum business, we also mine copper, zinc and rutile, and sell copper concentrate and zinc concentrate to various smelters in China.

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