Securities code: 001203 securities abbreviation: Inner Mongolia Dazhong Mining Co.Ltd(001203) Announcement No.: 2022-004 Inner Mongolia Dazhong Mining Co.Ltd(001203)
About the proposed implementation of Anhui Zhongsheng metal pellet Co., Ltd
Announcement of 1.5 million T / a pellet project
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of foreign investment
On January 11, 2022, the 8th meeting of the 5th board of directors of Inner Mongolia Dazhong Mining Co.Ltd(001203) (hereinafter referred to as “the company”) deliberated and adopted the proposal on the implementation of 1.5 million T / a pellet project by the subsidiary Anhui Zhongsheng metal pellet Co., Ltd. with 5 votes in favor, 0 against and 0 abstention. The estimated total investment of the project is 502.8 million yuan. This transaction does not constitute a connected transaction, does not constitute a major asset reorganization specified in the administrative measures for major asset reorganization of listed companies, does not constitute a reorganization listing, and does not need to be submitted to the general meeting of shareholders of the company for deliberation. The project has obtained the project filing form of Huoqiu County Development and Reform Commission, and the formal implementation of the project also needs to obtain energy conservation assessment and environmental protection approval procedures.
2、 Basic information of investors
Company name: Anhui Zhongsheng metal pellet Co., Ltd
Unified social credit Code: 91341522ma2ucpg389
Enterprise type: limited liability company (sole proprietorship of legal person invested or controlled by non natural person)
Legal representative: Zhang Jie
Date of establishment: December 6, 2019
Registered capital: 100 million yuan
Paid in capital: 100 million yuan
Registered address: Jin Risheng company, Fengjing town, Huoqiu County, Lu’an City, Anhui Province
Main production and operation place: jinrisheng company, Fengjing town, Huoqiu County, Lu’an City, Anhui Province
Main business: production and sales of iron ore pellet products
Equity structure: Anhui Zhongsheng metal pellet Co., Ltd. is a secondary wholly-owned subsidiary of the company
Upon inquiry, Anhui Zhongsheng metal pellet Co., Ltd. is not a dishonest executee.
3、 Basic information of the project
1. Project Name: 1.5 million T / a pellet project of Anhui Zhongsheng metal pellet Co., Ltd
2. Project owner: Anhui Zhongsheng metal pellet Co., Ltd
3. Construction contents: mixing system (batching room and mixing room), pelletizing system, roasting cooling system (grate room, rotary kiln area and annular cooler area), return hot air system (including flue gas denitration), main induced draft system, finished product system (finished product warehouse and finished product loading warehouse), flue gas desulfurization system and auxiliary production facilities such as power supply, automation, communication and hot gas.
4. Construction site: the pellet project is located in zhouyoufang mining area of Anhui jinrisheng Mining Co., Ltd
5. Construction scale: the project plans to build a grate rotary kiln pellet production line, with a pellet mineral volume of 1.5 million tons / year.
6. Project construction period: the planned construction period of the project is 18 months.
7. Investment estimation: the total investment of the project is 502.8 million yuan, including 358.83 million yuan of fixed asset investment and 143.97 million yuan of working capital, including 43.19 million yuan of initial working capital.
8. Fund raising: self raised by Anhui Zhongsheng metal pellet Co., Ltd
9. Investment benefit: according to the estimation of the feasibility study report, the financial internal rate of return of the project investment is 32.12% before tax, the investment payback period is 4.66 years (including the construction period), the after tax internal rate of return is 24.93%, the internal rate of return of capital is 24.93%, and the payback period is 5.53 years (including the construction period).
4、 Purpose, risk and impact of project investment on the company
With the increasingly strict requirements of environmental protection, energy conservation and emission reduction and the deepening of the concept of green development of iron and steel enterprises, in order to achieve source control and green development, a large proportion of cleaner pellets has become the direction and demand of the development of blast furnace burden structure. At the same time, the State encourages “high proportion pellet smelting process technology of blast furnace”. The implementation of pellet project is conducive to improving the proportion of high-quality pellet into the furnace, improving the technical and economic indicators of blast furnace, reducing pollutant emission and reducing process energy consumption. To sum up, the construction of pellet project meets the requirements of national environmental protection policy and industrial policy.
The company’s main business is iron ore mining and beneficiation, production and sales of iron concentrate powder and pellets, and processing and sales of by-product mechanism sand and stone. The main products are iron concentrate powder and pellets. Up to now, the company has two major mining bases in Inner Mongolia and Anhui. The total iron ore reserves recorded by the land and resources management department are 522452800 tons. After the 1.5 million T / a pelletizing project of Anhui Zhongsheng metal pelletizing Co., Ltd. is completed, the pelletizing capacity of the company will be increased to 4.2 million T / A. the project will cooperate with its own mines in Inner Mongolia and Anhui, and the advantages of the whole iron ore industry chain layout of the company will be further revealed.
The implementation of the project will help to further enhance the company’s competitiveness, maintain strong market anti risk ability, improve the profitability of the company’s main business in the future and enhance its comprehensive strength, which is in line with the company’s strategic goal of adhering to the development of main business and consolidating and improving the core competitiveness of main business.
The implementation of the project also needs to obtain energy conservation assessment and environmental protection approval procedures, and may face the market risk of product price fluctuation and the risk of industrial policy change. The company will fulfill the obligation of information disclosure in time in strict accordance with relevant regulations. Please pay attention to investment risks.
5、 Documents for future reference
Resolution of the 8th meeting of the 5th board of directors of the company
It is hereby announced.
Inner Mongolia Dazhong Mining Co.Ltd(001203) board of directors January 11, 2022
