Geographical Advantages

All of our mines and associated processing plants are located along the main roads in Laiyuan County. Wang’ergou Mine, Shuanmazhuang Mine and their associated processing plants are located only approximately six km west of Tian-zou Road (天走綫).

Zhijiazhuang Mine and its associated processing plants are located only approximately 12 km south of G112 Highway (112國道). In addition, Tian-zou Road (天走綫) and G112 Highway (112國道) further connect our mines and processing plants to our target customers in major iron ore demand areas in Hebei Province and Shanxi Province through Jing-Yuan Railway Line (京原綫) and G4 Highway (京港澳高速公路), along which many steel mills are located, such as Xuanhua Steel Group Co., Ltd. (宣化鋼鐵集團有限責任公司), Hebei Jingye Steel and Iron Limited Company (河北敬業鋼鐵有限公司), Xingtai Iron & Steel Corp., Ltd. (邢台鋼鐵有限責任公司), TISCO Linfen Iron & Steel Co., Ltd. (太鋼集團臨汾鋼鐵有限公司) and Handan Iron & Steel Group Co., Ltd. (邯鄲���鐵集團有限責任公司), which are among our target customers.

Due to the weight and bulky volume of the iron ores, it is generally difficult to transport them cost-efficiently. However, we believe that the favorable locations of our mines and processing plants in Hebei Province, with easy access to the road and rail transportation networks, allow us to significantly enhance the price competitiveness of our iron ore concentrates compared to other domestic mining companies located outside of major iron ore demand areas. This in turn will help us to capture growth opportunities by expanding our customer base to more steel mills with high iron ore concentrates demand in this region.