(Hong Kong, 15 May 2008) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertilizer producer in China, today announced that it has entered into a co-operation agreement with Yichang Geological Exploration League of Hubei Province* (“Yichang Geological League”) and Yichang Honghe Mineral Development Company Limited* (“Yichang Honghe”), to establish China BlueChem Yichang Mining Ltd., a joint venture company (“JV”) for phosphate mining and processing in Yichang City, Hubei Province of China.
The business scope of the JV includes exploring phosphate mine, mining, mineral processing and sales of phosphate ore by building a project with an annual phosphate mining capacity of 1,500,000 tonnes and a middle-low grade mineral processing annual capacity of 1,000,000 tonnes respectively.
The total investment amount for the JV is RMB418,000,000 (with a registered capital of RMB50,000,000) which shall be contributed as 51%,34% and 15% in cash by China BlueChem, Yichang Geological League and Yichang Honghe respectively. After establishment, RMB329,120,000 will be used to purchase the prospecting concession of the phosphate mine from Yichang Geological League. The total reserves volume of phosphate mine is 118.3 million tonnes including economically recoverable reserve of 92.8 million tonnes and prospect reserves volume of 25.5 million tonnes.
Mr. Yang Ye Xin, CEO and President of China BlueChem, said, “This is another expansion highlight for the Company after the formation of China BlueChem JinCheng last year. Upon completion, the JV will be the first phosphate resource we acquired and is going to bring in operational synergies to the Company’s existing and future mineral fertilizer business, laying down a more solid foundation for further development of Hubei Dayukou phosphate fertilizer project. With our financial strength and outstanding fertilizer development technologies, China BlueChem is well positioned to tap the tremendous growth potential of the mineral fertilizer market in China.”
About China BlueChemical Ltd.
China BlueChem is one of the largest and most efficient mineral fertilizer producers in China in terms of production volume and energy consumption. It is a listed company of China National Offshore Oil Corp. that engages in the production of downstream mineral fertilizers and synthetic chemical products. Currently, China BlueChem’s production facilities are located in Hainan and Inner Mongolia, China, with a total designed annual production capacity of 1,840,000 tonnes of urea and 800,000 tonnes of methanol. By entering into a long-term agreement, China BlueChem has secured stable natural gas supply for its Hainan Plant. In 2007, China BlueChem has also begun the research work on coal-gas convert technology to build a 1-million-tonnes-per-annum coal-based urea plant in JinCheng, Shanxi.
*Definitions:
Yichang Geological Exploration League of Hubei Province (湖北省宜昌地質勘探大隊) is a national business unit under 湖北省地質礦產勘查開發局
Yichang Honghe Mineral Development Company Limited (宜昌宏和礦業開發有限公司) is a national enterprise under 湖北省宜昌市夷陵區; its principal activities include investment in mineral-related businesses, exploration, mining, processing and transportation of mineral products
For press enquiries：
China BlueChemical Ltd.
Ms. Lydia Zhong Tel: (852) 22132502 zhongyx@cnooc.com.cn
Strategic Financial Relations (China) Limited
Ms. Karen Hung Tel: (852) 2864 4854 karen.hung@sprg.com.hk
Ms. Arlene Wong Tel: (852) 2864 4899 arlene.wong@sprg.com.hk
Ms. Annie Choi Tel: (852) 2864 4837 annie.choi@sprg.com.hk
Ms. Cherry Qiu Tel: (852) 2114 4960 cherry.qiu@sprg.com.hk
