HBIS Resources Co., Ltd.
河钢资源
000923
Shenzhen Stock Exchange
Company Profile
(1) Competitive advantage of the Company in the copper wire market in South Africa PC of the Company is the largest copper wire manufacturer in South Africa, with stable sales to end customers.As the second largest economy in Africa, South Africa has great potential for infrastructure development, and the demand for copper wire will maintain steady growth.After LIFT II is put into operation, the production and operation period of copper ore can last for 15 years, which will continue to ensure PC's influence and industry position in the copper product market in South Africa and provide a stable profit guarantee for the Company.During the reporting period, South Africa was seriously affected by COVID-19. As the copper ore is located underground, the production of the Company's copper ore was restricted by the pandemic. (2) High quality vermiculite resources As the main vermiculite mining area in South Africa, PC's vermiculite mine is included in the top three vermiculite mines in the world with a vermiculite output accounting for about 1/3 global share. Due to the high grade and quality of PC's vermiculite ore, PC has established a solid supply relationship with downstream customers and exported vermiculite to customers in North America, Europe and Asia in the long term. (3) Excellent mining operation and management ability The Company has plenty of experienced production managers and engineering technicians in the copper mining and smelting industry. These personnel have rich production and management experience and technology accumulation, which can meet the needs of project operation.Meanwhile, as a diversified mining enterprise with a long history, PC was subordinate to a mining magnate Rio Tinto before 2013. During Rio Tinto's operation, PC established a world-leading and standardized production management system.The Company has obtained ISO9001 (2008) certification in mining, smelting, processing and other production links, which can provide customers with stable and quality guaranteed mineral products. (4) Cost advantage of by-product magnetite The Company's magnetite is an concomitant output separated in copper ore processing, and after decades of copper ore production, about 130 million tons of magnetite are stored on the ground, with an average grade of 58%.At the same time, magnetite products will be added to underground production every year.PC can increase the magnetite grade to 62.5%~64.5% by simply separating the magnetite.In terms of magnetite production cost, it has great advantages over iron mines worldwide, and will contribute stable profits to the Company. (5) Harmonious community and stakeholder relationships PC abides by local regulations on environmental protection, production safety, and health, and has made positive contributions to local employment and economic development. PC has built a harmonious relationship with Ba-Phalaborwa community, which will provide good basic conditions for production stability and acquisition of surrounding resources.Because of its good relationships with the local communities, the Company has been recognized by the local government.At the same time, PC has established a close relationship with the Department of Mineral Resources (DMR) of South Africa. It is highly trusted by DMR and can obtain the guidance of DMR in time. (6) Complete infrastructure PC's mining area has good infrastructure conditions for mining exploitation. The Company is powered by ESKOM, and PC also wholly owns Phalaborwa steam turbine power plant, which uses the heat recovery boiler waste gas in the furnace to generate electricity, both ensuring the normal copper smelting.The Company is supplied by the Northern Water Supply Company through pipelines and reduces pollution emissions by recycling water resources. The Company is next to the national highway, and its products can be transported to the territory and ports of South Africa by highway and railway, and sold globally by sea.
Full description
To date, the main business of the Company did not change, so it still mainly engaged in mining, processing and sales of copper ore, iron ore and vermiculite. As a listed company, its parent company is a holding company that does not engage in mining production, so the main profit of the Company came from sales of magnetite products.The Company realized a safe, stable and efficient production system by continuing to optimize the production process, that is, by constantly improving the operation level and operating efficiency of each link in production and operation, from the aspects of safety and environmental protection, process control, equipment management, production coordination, and logistics and shipment and through measures such as cost decreasing and benefit increasing as well as fine management.While implementing the COVID-19 control measures, the Iron Ore Operation Team of the Company in South Africa refined the daily, weekly and monthly production and operation objectives according to the objectives of the Company, and closely cooperated with the Maintenance Team to effectively improve the overall equipment efficiency. Despite the severe operating environment, they overcame the adverse factors such as outbreak of COVID-19, tropical storm and riot, and ensured the orderly and normal production and operation of the Company by actively coordinating railway transport capacity, starting highway transportation, etc. In terms of the copper ore sector, as mining is a confined space work underground, which is limited by the pandemic control level of the South African government, the normal work of the construction team cannot be guaranteed.The Company actively formulated a dynamic plan in combination with the pandemic control level. When the pandemic control level was low, efforts would be intensified in underground work, as a result of which, copper output steadily increased with profitability restored. Vermiculite is a natural, inorganic and non-toxic mineral that will expand under high temperature. It is widely used in agriculture, forestry, fishery, construction, metallurgy and other industries. Besides, it is also used as adsorbent, filter aid,active carrier of chemical products and chemical fertilizer, adsorbent for sewage treatment and seawater oil adsorption, cigarette filter, and explosive density modifier. Vermiculite production and sales of the Company were stable, and continued to create profits.