BEIJING, Dec. 13, 2010 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that the Company has received the preliminary 2011 production limitation policy for the fluorite industry from the China Non-metallic Minerals Industry Association Fluorite Committee (CNMIAFC).
In 2010, the Chinese government adopted a series of policies to protect the country's scarce fluorite resources from exploitation and promote an improved pricing environment. Prior to the implementation of such policies, producers in downstream industries, such as hydrofluoric acid, had developed excess capacity and adopted a low-price and low-margin strategy to survive, resulting in the over mining of fluorite and the emission of unnecessary environmental waste.
The 2010 target reduced fluorite ore production to under 10 million metric tons and reduced final processed fluorite products to under 4.75 million metric tons. This plan resulted in a sharp increase in prices, increasing pricing for the primary fluorite product by over 100%.
CNMIAFC communicated that the Chinese government's preliminary 2011 production plans are approximately 9.5 million metric tons of fluorite ore production, with final processed fluorite products at approximately 4.5 million metric tons. The final limitation production plan targets for 2011 will be issued by the Chinese government at the end of 2010.
As the leading fluorite company in China, China Shen Zhou has been advised by the Chinese government that it will have priority status in order to assist the Company in achieving its production targets.
Ms. Xiaojing Yu, Chief Executive Officer of China Shen Zhou, commented, "I believe that the government's 2011 limitation production plans will generate a similar price effect on fluorite products as the industry experienced in 2010. As the biggest fluorite producer in Northern China, China Shen Zhou is also the largest beneficiary of these policies protecting the country's valuable fluorite resources."
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b)zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang.
For more information, please visit http://www.chinaszmg.com/
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in the People's Republic of China, variations in cash flow, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
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SOURCE China Shen Zhou Mining & Resources, Inc.