Minco Plc - Proactive Investors
Minco Plc - Proactive Investors
Minco Plc - Proactive Investors
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<strong>Minco</strong> <strong>Plc</strong><br />
EMM Market Opportunity …<br />
Fragmented & High Cost Chinese Industry<br />
Global EMM End-Uses, 2011e<br />
Mn Alloys<br />
12%<br />
Electronics<br />
2%<br />
Other Steels<br />
32%<br />
Other<br />
12%<br />
Stainless<br />
Steel<br />
42%<br />
•China currently supplies 98% of world<br />
EMM supply<br />
•Highly fragmented industry within<br />
China, 600 mines & 200 EMM plants.<br />
Average plant capacity of 7,000 TPY.<br />
Only 22% of Chinese plants have<br />
capacity > 50,000 TPY. Buchans<br />
evaluating 50,000 – 100,000 TPY.<br />
•Declining Chinese ore reserves &<br />
grades, Increasing electrical tariffs,<br />
labour rates and relatively high inflation<br />
rate<br />
•High Chinese production costs<br />
(from $0.81 - $1.10/lb EMM) plus 17%<br />
VAT & 20% export tax for sale to<br />
international markets =~$1.11-$1.50/lb<br />
•Window of Opportunity opening for<br />
low cost EMM producers. Buchans<br />
target goal of
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