Liu Andong Visits Sinosteel's Enterprises in Zimbabwe, South Africa for Guidance and Meets with Eramet Group

From August 18 to 26, Sinosteel Group's Chairman Liu Andong led a delegation to Sinosteel's enterprises in Zimbabwe and South Africa for work guidance, and visited the Eramet Group in France. Vice General Manager Liu Peng accompanied him in related activities.

 During the visit to Zimbabwe, Liu Andong's delegation went to the Kwekwe Smelter, Central Mines Ngezi area to understand current production costs, new furnace construction and operations, underground mine development, etc. They listened to dedicated reports from the Chinese and local management teams on production, operations and key project progress, and held in-depth exchanges on quality and efficiency improvement, future strategic planning. The delegation also met with Chinese Ambassador to Zimbabwe Zhou Ding to exchange views on further deepening cooperation between Chinese enterprises in Zimbabwe.

 Liu Andong pointed out that Sinosteel is building a world-class chromium resource company with international characteristics and entering the capital market. As Sinosteel's Zimbabwe bridgehead, Zimasco has great prospects. He stressed: First, fully utilize existing ferrochrome capacity, take the initiative to overcome ore, power, reductant and other challenges. Second, strategically transform by optimizing production planning, rapidly increasing high-grade concentrate output for parallel chromite concentrate and ferrochrome development, achieving virtuous "mining supporting smelting" and "mining strengthening smelting". Third, strengthen mining and smelting team building, establish a Chinese-local "AB position" system and enhance exchanges with the local region to accelerate internationalization. Fourth, strengthen communication with local banks and institutions, study countermeasures for Zimbabwe's inflation and mitigate foreign exchange losses.

In South Africa, Liu Andong's delegation visited Sinosteel's chromium joint venture Samancor's western mines and smelters to understand resource distribution, chromite mining, logistics, transportation and production. Liu Andong listened to the local management's report on current operations and future strategic development. He affirmed the Samancor team for sparing no effort against the COVID-19 pandemic, tough markets, South Africa's power rationing policy and other challenges to actively promote and ensure stable and expanded production, achieving good operational results. He noted Sinosteel highly values the development of its southern African chromium enterprises and expects the Samancor team to take a global perspective, deeply tap potential, increase mining, smelting and control capabilities to the extreme, while ensuring mining-smelting balance. Sinosteel will actively fulfill its controlling shareholder obligations, further improve management efficiency, and support in energy supply, capital operations, and technical assistance.

 Liu Andong requested Samancor to strengthen resource control through multi-party cooperation and increase market share, adhere to marketization, securitization, internationalization, professionalization and localization to enhance operational efficiency and value creation. With strategic vision, Samancor shall plan high-quality development, seize parallel chromite and ferrochrome development, formulate a solid three-five year plan to further boost global chromium resource market influence.

During his African visit, Liu Andong met separately with Zhang Shaogang, Vice Chairman of the China Council for the Promotion of International Trade, Chen Siqing, Chairman of Industrial and Commercial Bank of China, Yang Changli, Party Secretary and Chairman of CGN, Song Lei, Chairman of the China-Africa Development Fund, Li Xuhong, Vice General Manager of China Huadian Engineering Co., Ltd. and others. In the meetings, he sincerely hoped that the organizations in Africa would continue to increase support for Sinosteel's enterprises there. He sought deeper exchanges surrounding Sinosteel's new international positioning after joining the Baowu family, as well as cooperation among Chinese-funded enterprises in Africa.

After concluding related activities in the African region, Liu Andong's delegation visited the Eramet Group in France on August 25 local time. The two sides had in-depth exchanges on the development of China's steel industry, Sinosteel's new strategic positioning and bilateral cooperation, as well as the application of manganese, nickel, lithium and other metallurgical and new energy materials. 

Eramet Group is a multinational mining and metal products group, with main products that involve metallic materials such as manganese, nickel, lithium, titanium, and zirconium. Its subsidiaries are located in 15 countries globally. Currently, the company produces nearly 7.5 million tons of high-grade manganese oxide ore and 25 million tons of nickel ore annually. Among them, over 4 million tons of high-grade manganese oxide ore is exported to China. Sinosteel Deyuan is one of its major Chinese customers, with an annual import volume close to 15% of Eramet's sales in China.

At the meeting, Eramet Group's Chief Operating Officer Kleber SILVER, Senior Vice President of Commercial Paul DESPORTES, and relevant manganese, lithium and other product teams welcomed Liu Andong's visit on behalf of Eramet. He said that Eramet Group maintains good cooperation with Sinosteel in manganese ore and other products, hoping the two sides will continue to leverage their respective strengths, strengthen interaction and build mutual trust towards strategic cooperation in the future.

Liu Andong expounded on Sinosteel's new positioning to build an industrial platform for rare and minor metal raw materials, alloys and new materials. He introduced the current situation of China's steel industry and expressed the willingness to strengthen cooperation with Eramet in manganese, nickel, lithium and other mutually concerned products. He hoped the two sides will deepen cooperation in mine investment and construction, mineral resource development, technology and new materials based on the existing foundation.

Through this exchange, the two sides reached consensus on strengthening cooperation in the rare and minor metal industry and agreed to conduct regular high-level mutual visits to seek strategic cooperation opportunities. They also had in-depth discussions on issues of common concern such as the international and domestic economic situation, market conditions and emissions peaking and carbon neutrality policies.

Xiong Jian, Assistant to Sinosteel Group's General Manager, Chairman of Sinosteel Overseas Pan Wenliang participated in the visit to enterprises in Zimbabwe and South Africa. Relevant Sinosteel Deyuan officials attended the meeting with the Eramet Group.

Investigating Zimasco central mines

Meeting with Chinese Ambassador to Zimbabwe

Meeting with Zhang Shaogang, Vice Chairman of China Council for the Promotion of International Trade

At the meeting venue


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