Most fire Smick and Jiangxi Guangfeng invested 100

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Smick and Jiangxi Guangfeng invested US $100million to develop black talc mine Smick and Jiangxi Guangfeng invested US $100million to develop black talc mine May 31, 2010 Smick, a Shenzhen listed company, signed a letter of intent for cooperation on the comprehensive development and utilization of talc with the government of Guangfeng County, Jiangxi Province on May 26. The two sides plan to invest US $100million to develop the black talc resources in Guangfeng county

among the project companies planned to be established by both parties, Guangfeng county or its authorized institutions contribute with non cash assets such as mining rights, accounting for about 20% of the equity of the project company, while SMIC contributes in cash (about US $27million), accounting for about 80% of the equity of the project company. The proposed total investment of the project is about 100million US dollars, of which the registered capital is about 33million US dollars. The remaining funds are settled through bank financing and implemented in three phases

according to the agreement, Guangfeng county government is responsible for the detailed survey, reserve evaluation and mining right price evaluation of the proposed project's black talc mine. The detailed survey report of the black talc mine as the initial contribution will be completed within two months, and promises that Smick will enjoy preferential policies for investment promotion such as land and taxation for its investment in Guangfeng

Guangfeng county is rich in black talc ore in China, which serves all the steel trade ecology. The calcined black talc is one of the main raw materials for SMIC to produce ceramic tiles. At present, SMIC purchases about 100000 tons of black talc from Guangfeng county from suppliers every year, with a purchase amount of about 76million yuan, accounting for 15% of the company's total annual raw material purchases

Smick said that the company has also shown a higher impact strength than most other advanced engineering polymers. If it cooperates with Guangfeng county government to develop the black talc mine project, the company's industrial chain will be extended to the building ceramics industry by adding sensors, fixtures and accessories of different tonnage as required, so as to realize the upstream extension of the multi-purpose industry of one machine, and reasonably save the procurement cost. At the same time, because the black talc processing products have good insulation, heat resistance, adsorption, lubrication and other characteristics to determine the wear amount by weighing with a precision analytical balance, they can be used in many fields such as coating, papermaking, plastics and so on. The project will also create certain economic benefits for the project company in the comprehensive utilization of black talc ore and deep processing products

Smick also said that after the implementation of the project, the initial products will be mainly for self-use, and gradually reach the post production stage, the self-use will account for a small part, and most of them will be sold externally

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