Another Chinese company is deeply embroiled in the Australian mining sector—Pangang Vanadium & Titanium is looking to shed its investment burden in Carrara.

Australia, once a hotspot attracting numerous Chinese companies to invest in iron ore, is now becoming a source of heartache for Chinese businesses. This time, it’s suffering... “ Injury ” It is Pangang Vanadium & Titanium, a subsidiary of Ansteel Group.

Pangang Vanadium & Titanium 6 Moon 7 The company announced late in the evening that it plans to transfer its stake in Ansteel Group Hong Kong Holdings Limited. ( Hereinafter referred to as Ansteel Hong Kong ) Ansteel Group Investment ( Australia ) Limited Company ( hereinafter referred to as An'ao Company ) The entire equity stake has been transferred to Ansteel Group Mining Company. ( hereinafter referred to as Ansteel Mining ) The transaction price will be determined based on the valuation provided by the asset appraisal agency.

Since the actual controllers of Pangang Vanadium & Titanium and Ansteel Mining are both Ansteel Group, this transaction constitutes a related-party transaction.

The listed company’s transfer of its two wholly-owned investment companies to Ansteel Mining is likely aimed at shedding the liabilities that are currently... “ Severe hemorrhage ” The burden, namely Australian Carrara Mining Co., Ltd. ( Hereinafter referred to as Carrara )。

Carara is primarily engaged in the exploration and development of iron ore projects. Its mining area is located in the central-western region of Western Australia, and its proven reserves of magnetite ore are— 25.18 hundred million tons. Pangang Vanadium & Titanium’s controlling shareholder, Ansteel Group, from... 2007 Starting from the year, through An'ao Company, in partnership with Jinda Bi Metal Co., Ltd. ( Hereinafter referred to as Jindabi ) Jointly develop the Carrara iron ore project.

However, the Carrara iron ore project is not progressing smoothly. 2013 This year, Carrara achieved profitability. 2.28 hundred million yuan, since 2014 Since the beginning of the year, mineral prices have remained persistently low, and Carrara has reported a loss due to impairment provisions. 45.65 100 million yuan; continued losses in the first quarter of this year. 1.29 100 million yuan.

The announcement indicates that the primary assets of An’ao Company and Jindabi are their respective holdings in Carrara. 52.16% and 47.84% Equity: Ansteel Hong Kong’s primary asset is its holding in Jindabi. 35.89% Equity.

It is worth noting that, 2013 Carrara is still profitable this year. 2.28 hundred million yuan, but since 2014 Since last year, mineral prices have remained persistently low, and Carrara suffered a substantial loss last year due to the provision for impairment. 45.65 100 million yuan, this year 1 The quarter continues to report a loss. 1.29 100 million yuan.

A research report by Changjiang Securities suggests that, given weak domestic demand and ongoing pressure from the expansion of low-cost overseas mines, mineral prices are unlikely to show significant improvement in the medium term. It is expected that Carara’s profitability will continue to face downward pressure going forward. At this juncture, Pangang Vanadium & Titanium’s divestment of the Carara project will help maintain the profitability level of its listed entity and actively turn losses into profits.

2014 This year, Pangang Vanadium & Titanium achieved operating revenue. 167.79 100 million yuan, up year-on-year 7.55% Net profit loss as high as 37.75 100 million yuan, down year-on-year 787.61% For steel companies that have been battered by the harsh winter, shedding unprofitable burdens is undoubtedly the most immediate and effective self-help measure.

Pangang Vanadium & Titanium is China's largest publicly listed company engaged in iron ore beneficiation. According to a research report by China Merchants Securities, the total proven reserves of Pangang Vanadium & Titanium’s three major mining areas exceed... 49 100 million tons, domestic iron ore production capacity 1350 Ten thousand tons, plus Carrara 800 Ten thousand tons of magnetite and 200 With a production capacity of 10,000 tons of hematite ore, Pangang Vanadium & Titanium’s total output of iron concentrate has reached... 2350 Ten thousand tons.

The above research report by Changjiang Securities argues that, following the divestiture of Carrara, from a broader perspective of Pangang Vanadium & Titanium’s overall development, vanadium and titanium resources will remain largely stable. Meanwhile, the iron ore business is unlikely to show significant improvement in the short to medium term. Consequently, the company’s traditional core business may continue to face pressure for some time to come.

Pangang Vanadium & Titanium stated that, according to... 2015 Year 3 Based on unaudited data at the end of the month, this equity sale is expected to reduce the company’s total assets reported in the consolidated financial statements. 198.5 100 million yuan, reducing the total consolidated liabilities. 185.33 100 million yuan.

6 Moon 8 On the day, Pangang Vanadium & Titanium opened with an immediate daily limit-up, and its current stock price is... 5.43 Yuan.

While Pangang Vanadium & Titanium is making every effort to break free from Australia, several Chinese steel companies are still facing the awkward predicament of being stranded in Australia. As previously reported by Interface News, the China-Australia iron ore project under CITIC Shares Co., Ltd., a subsidiary of CITIC Group—the giant in China’s securities industry—has encountered difficulties. (Sino Iron Project) Deeply mired in a quagmire, the total investment scale has surged to nearly 10 billion U.S. dollars, making this China’s largest mining investment project in Australia to date. CITIC Corporation and Australian mining billionaire Clive... · Palmer (Clive Palmer) The protracted lawsuit between them has become even more convoluted and confusing.

In addition, the West Pilbara iron ore project in Australia, led by Baosteel Group. (West Pilbara Iron Ore Project) It recently also ran into difficulties due to sharp fluctuations in mineral prices. According to a Reuters report, in order to achieve annual... 4000 With an initial capacity of 10,000 tons, the Western Pilbara iron ore project requires construction. 280 kilometer-long heavy rails and Anketell Point Port facilities. Completing these tasks will take at least four years, and according to the current schedule, the project is... 2020 It's unlikely to go into production before the new year.