BEIJING, April 27, 2011 /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's subsidiary, Xiangzhen Mining, will increase the prices of its fluorite powder products from the current RMB 2,500 per ton (approximate $380 per ton) to RMB 3,100 per ton (approximate $470 per ton) on May 1, 2011.
This new data on the price trend and other industry news regarding the downstream fluorine chemical and related products was distributed at the third meeting of the Fluorite Committee Northwest Liaison of the China Non-Metallic Minerals Industry Association (CNMIA) which was held on April 19, 2011 in the city of Hohhot. Attending representatives expected the market price of fluorite ore will be over RMB 3,000 per ton in May, and they also provided a briefing on each respective company's recent developments and outlook.
Last year, due to the insufficient cash flow of its operations, Xiangzhen's signed sales orders at fixed sales prices and received cash more than 3 months in advance from customers. Therefore, the Company did not receive any benefit from the increase in the market price of fluorite ores. Although the market price of fluorite ore increased from approximately $118 per ton at the beginning of 2010 to $295 per ton by the end of 2010, Xiangzhen's average selling price for fluorite powder was only $163.78 per ton. However, Xiangzhen can fully benefit from this year's price increase.
Ms. Xiaojing Yu, CEO of China Shen Zhou, commented, "We believe a program to more efficiently use China's scarce fluorite resources will be an advantage to everyone. Rising prices for our fluorite products will generate greater benefits and further increase shareholder value."
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.
SOURCE China Shen Zhou Mining & Resources, Inc.