China Mining (Shanxi) Energy Group's Bauxite Industry Chain Cooperation Project in Kalimantan, Indonesia Officially Launched

China Mining (Shanxi) Energy Group's Bauxite Industry Chain Cooperation Project in Kalimantan, Indonesia Officially Launched

Beijing, China

On March 6th, H.E. Zhou Haoli, Indonesian Ambassador to China, accompanied by Ms. Liang Yuning, Deputy Ambassador, Ms. Han Aili and Ms. Su Linxiu from the Economic Department of the Indonesian Embassy in China, and Mr. Rizaldi from the Investment Promotion Center, visited the Beijing office of China Mining (Shanxi) Energy Group Co., Ltd. to witness the official signing of a bauxite cooperation and development agreement between the Group and three Indonesian enterprises, namely PT. BERKAH INTI ENERGI, PT. ANUGERAH MINERAL GLOBAL and PT. BUMI KETAPANG RESOURCES, for the project in Kalimantan Province, Indonesia. This signing marks a crucial step for China Mining Energy in its overseas mineral resource layout and production capacity cooperation under the Belt and Road Initiative. The project will be invested and constructed in phases with an integrated mining-concentration-smelting model, striving to build a benchmark for green mining cooperation between China and Indonesia.

At the signing ceremony, Ambassador Zhou Haoli extended warm congratulations on the conclusion of the project, spoke highly of the positive significance of the pragmatic cooperation between Chinese and Indonesian enterprises in the energy and mineral sector, and expressed the expectation that the project would be advanced to high standards and yield early results, injecting new impetus into the economic and trade exchanges and industrial synergy between the two countries.

It is learned that the project, led by Hou Dengfeng, Deputy General Manager of the Group, has undergone nearly a year of preparation. During this period, the project team conducted in-depth communications and efficient docking with Indonesian partners for many times, and made a special field trip and investigation to Indonesia. The team fully demonstrated the resource conditions, development plans and cooperation models, and finally reached a consensus and signed the formal cooperation agreement.

This cooperation adopts a phased and full-chain investment and development model, with the total investment to be implemented in three phases in an orderly manner:

• Phase I investment: Approximately RMB 100 million, for the construction of mining and ore dressing plants to build the capacity for resource mining and primary processing.

• Phase II investment: Approximately RMB 300-400 million, for the in-depth processing of mineral powder to enhance product added value.

• Phase III investment: Approximately RMB 1-1.5 billion, for the construction of supporting infrastructure such as power supply and the building of a smelting plant to form a complete industrial chain.

Upon the full commissioning of the project, it will create 300 to 500 local jobs. In the first year of production, it is expected to achieve an output value of about 80 million US dollars and contribute approximately 10 million US dollars in tax revenue, effectively driving local economic development and industrial upgrading.

Relevant person in charge of China Mining (Shanxi) Energy Group stated that Kalimantan Province boasts superior bauxite resource endowments and enormous development potential. Taking this cooperation as an opportunity, the Group will leverage its advantages in mineral investment, operation and management, technical equipment, and industrial chain synergy, collaborate closely with Indonesian partners, advance the project development and construction to high standards and quality, adhere to green mining and low-carbon operation, strictly fulfill social responsibilities, and contribute to local economic development and people's livelihood improvement.

In the future, the Group will continue to deepen its layout in the overseas high-quality resource market, strengthen pragmatic cooperation with countries along the Belt and Road Initiative, constantly improve its global resource allocation capacity and core competitiveness, and contribute to safeguarding the stability of industrial and supply chains and promoting the high-quality development of the energy and mineral industry.