Luoyang Heung Kong Wanji Aluminum Invests RMB 2.1 Billion on Phase III of the Alumina Project

The RMB2.1 billion phase III Luoyang Heung Kong Wanji-invested project has commenced.Phase III consists of 35 infant projects, where 8 workshops and some auxiliary facilities will be built. With investment from the Heung Kong Group and Xin’an Power Group, this project first started in March 2005 with a planned investment of RMB 5.8 billion.

In April 2007, phase I, a 400,000-ton alumina project, was completed; in the same year, the phase II 400,000-ton alumina project commenced and was put into operation in July 2008. Phase II has been producing to its designed capacity since late July 2009.

Heung Kong Wanji has signed a design contract with the Design and Research Institute of Northeastern University on a 400,000-ton alumina phase III project with total investment of RMB2.1 billion. The processes will be further optimized. The Chinidui Site is currently under construction and is the first child project commencing civil engineering in phase III.

To meet the raw material demand of phase III,a bauxite exploiting project will commence by Heung Kong. Currently Heung Kong Wanji owns 12 bauxite mines with total reserves of 80-100 million tons, all of which remain unexploited. Exploitation of bauxite resources in Xin’an County is planned by the end of October.By the end of 2011, phase III of Heung Kong Wanji is expected to be completed and reach its designed capacity. At that time, annual revenue of RMB5 billion is expected with profits and taxes of RMB2 billion.