Innovative Non-ferrous Metal Base at Hechi

A strategic cooperation framework agreement was signed on Jan. 5th 2010 between the Hechi Government, Guangxi Province and Guangxi Non-ferrous Metal Group Co., Ltd. covering the construction of the Hechi Innovative Nonferrous Metal Industrial Base, further promoting the development of Hechi’s non-ferrous metal industry.

According to the agreement, GNMG will cooperate with Hechi’s Government on resource integration, prospecting and development. Under the agreement, the principles of “government guidance, independent plant management,mutual benefits, equality and free will and market operation” will apply in addition to the“three local principles” of local registration,local taxation and local processing/value-added processing, by which GNMG will be encouraged to conduct the annexation and reorganization of Hechi’s mineral resources and nonferrous metal industry. This will improve industrial centralization and intensity, boost industrial upgrading, build an innovative nonferrous metal base and promote the healthy and rapid development of Hechi’s non-ferrous metal industry.

Li Yangtong, board director of GNMG, said the agreement indicated an important starting point for achieving their goal of RMB30 billion in revenue and RMB4 billion in taxes and profits over three years. GNMG would be committed to the agreed principles, promote resource and asset integration and the comprehensive development of resource sciences, implement the “moving outwards” strategy, help Hechi build an import-export trade centre for its nonferrous metal product industry, promote the intensive processing of non-ferrous metal products and focus on the development of high-tech/high value-adding products to increase the revenue share of intensive processing to 30%of the industrial total, and to promote the sustained and healthy development of Hechi’s non-ferrous industry.

Lan Tianli, Hechi’s Municipal Party Secretary,said that GNMG, as the only large wholly state-run plant to have integrated state-owned assets operation and mineral resource development, is endowed with remarkable talent, as well as technical, financial and organizational advantages. Hechi City would perform the duties specified in the agreement and support the development of GNMG in Hechi. GNMG will accelerate the relocation of Guangxi Huaxi Group to Hechi, promote product innovation,strengthen financial, technical and talentrelated investment, focus on the integrated utilization and intensive processing of resources, and boost industrial upgrading of nonferrous metal in Hechi, in addition to working on the construction of the Hechi Innovative Non-ferrous Metal Industrial Base to attain a win-win solution.