The Baishizhang Mine (the “Mine”) is Southern China’s largest molybdenum mine by resources as of today. The Mine has a mining permit of an area of 2 km2. It is located in Wuhua County, in the Northeastern section of the Guangdong Province.

Molybdenum is a silvery white and malleable metal with physical properties similar to those of iron and chemical properties similar to those of chromium and a very high melting point (2,625°C). Molybdenum readily forms hard and stable carbides, and for this reason it is used principally as an alloying agent in steels, cast irons and superalloys to enhance hardenability, strength, toughness and resistance to wear and corrosion. Molybdenum is also widely used in the chemical process industries for purposes such as lubricants and catalyzers.

The Mine has an estimate JORC standard resource of 78 million tons as of December 2011. The planned product of the Mine is molybdenum concentrate (molybdenum sulfide).

With a production capacity of 3,000 ton of molybdenum ore per day, the medium term target is to increase the capacity to 15,000 ton per day. Production and processing facilities and infrastructure are significantly completed.