Sichuan Anning Iron And Titanium Co.Ltd(002978) ( Sichuan Anning Iron And Titanium Co.Ltd(002978) ) announced on April 1 that in order to give full play to the advantages of vanadium and titanium resources in Panzhihua and realize strategic layout and long-term planning. Recently, the company and the Management Committee of Panzhihua vanadium titanium high tech Industrial Development Zone signed the investment contract for the whole industrial chain project of Sichuan Anning Iron And Titanium Co.Ltd(002978) energy grade titanium (alloy) materials with an annual output of 60000 tons.
It is disclosed that the main content of the project is sponge titanium and supporting production line, titanium (alloy) material ingot and rolling production line. The construction land area of the project is about 2000 mu, and the site is located in like area of Panzhihua vanadium titanium high tech Industrial Development Zone. The total investment of the project is 10 billion yuan, which is divided into three phases. The first phase investment is 5.5 billion yuan, the second phase investment is 2.5 billion yuan, and the third phase investment is 2 billion yuan. The project starts construction after obtaining legal and compliant construction procedures. The planned construction period of phase I project is 24 months and that of all phase III projects is 60 months.
Sichuan Anning Iron And Titanium Co.Ltd(002978) is a circular economy enterprise for the comprehensive utilization of vanadium and titanium resources by mining and beneficiation of polymetallic co associated ores with advanced technology. It is mainly engaged in the mining, washing and sales of vanadium titanium magnetite. Its main products are titanium concentrate and vanadium titanium iron concentrate. The company has abundant vanadium titanium magnetite resources.
According to the latest annual report of 2021, during the period, Sichuan Anning Iron And Titanium Co.Ltd(002978) produced 536000 tons of titanium concentrate and sold 537600 tons of titanium concentrate.
In the announcement of investor relations activities recently disclosed, Sichuan Anning Iron And Titanium Co.Ltd(002978) also said that the company expects to produce 53 China Fangda Group Co.Ltd(000055) 0000 tons of titanium and 1.2-1.3 million tons of iron in 2022. The product output of the company is calculated according to the production plan of the current year and comprehensively considering the production indicators such as recovery rate.
In recent years, the market price of titanium dioxide in China has shown a strong pattern. Sichuan Anning Iron And Titanium Co.Ltd(002978) as the largest titanium concentrate supplier in China, its business performance has also increased significantly.
In 2021, the company achieved an operating revenue of 2.303 billion yuan, a year-on-year increase of 40.75%; The net profit was 1.435 billion yuan, a year-on-year increase of 104.85%.
In addition to the layout of titanium industry chain, Sichuan Anning Iron And Titanium Co.Ltd(002978) like other titanium dioxide enterprises, they all pay attention to the upstream material market of power battery.
In the announcement of investor relations activities disclosed recently, regarding the news that the company plans to invest 5 billion yuan to build a 200000 ton battery grade iron phosphate and lithium iron phosphate production project, Sichuan Anning Iron And Titanium Co.Ltd(002978) replied that extending the industrial chain belongs to one of the company’s development strategies, so the company has been paying high attention to the development of relevant downstream industries. Lithium iron phosphate is also one of the industries concerned by the company. At present, the company is still in the key stage of research. In addition, the company also said that the company is concerned about the application of all vanadium flow battery. Therefore, relevant departments of the company have been tracking the development of all vanadium flow battery. In the fourth quarter of 2021, it was planned to enter this field through equity investment, which was finally abandoned due to business negotiation. In the future, we will continue to pay attention to the development of all vanadium flow battery.
For this large-scale investment in titanium industry chain project, Sichuan Anning Iron And Titanium Co.Ltd(002978) said that at present, China’s titanium industry is mainly concentrated in the middle and low-end product market, with small scale and uneven quality. For a long time, China’s titanium industry lacks titanium materials with large-scale production, long-term stable quality and high cost performance, which seriously restricts the expansion of titanium application field. The company seizes the opportunity of Sichuan Province’s key support for the development of vanadium and titanium and the construction of Panxi national strategic resource innovation pilot zone. Focusing on the company’s industrial chain extension strategy, combined with Panzhihua’s rich green power resources (hydropower, photovoltaic and wind power resources), the company constructs the whole industrial chain project of “vanadium titanium magnetite sponge titanium ingot, titanium sector energy grade titanium (alloy) materials”.
The project plans to use advanced technology and rich clean energy, so that the operation of the project will have a competitive advantage after it is put into operation. At the same time, the unit energy consumption of the project is expected to be significantly lower than that of the current old and small enterprises, which has played a positive role in responding to the national “double carbon” policy.
However, the company also said that the capital source of this investment project is its own or self raised funds. The construction period of the project is long and the investment is large. The company will implement and put into operation by stages according to the strategic development plan and the actual situation.
