On November 13, 2019, China Kings Resources
announced that the company signed an “Intent to Transfer Agreement” with two
transferors, Zhanfu Feng and Hengsong Pan, for the transfer of Ningguo Mining Ltd.
to the ownership of China Kings Resources. King
Resources plans to acquire 80% of all equity earnings of Ningguo Mining along
with all associated debts and plans to pay a total of no more than RMB 104
million for the purchase. China Kings Resources agreed to pay all taxes
associated with the transfer of equity earnings.
Ningguo Mining Ltd. runs various
operations, including the extraction, processing, acquisition and sales of
calcium fluoride, sales of mining equipment, and the acquisition, processing,
and selling of calcium fluoride powder.
Ningguo Mining Ltd. owns extraction rights
for a calcium fluoride mine located in Zhuangcun, Ningguo City. The rights of Ningguo
Mining Ltd. are clearly defined, and Ningguo Mining Ltd. has no limits in its
right to mortgage, close down, or temporarily suspend the mine, nor does it
face any limits in its right to pursue lawsuits related to the mine. Ningguo
Mining Ltd. extracts approximately five tons of calcium fluoride per year and
has a supply of approximately 1.16 million tons of calcium fluoride on hand.
The deal between China Kings Resources and Ningguo Mining Ltd. does not include
the Kengwu mountain mine belonging to Ningguo Mining Ltd.; the extraction
rights to this mine will be given to a third party.
The company will focus on investing in and
developing the calcium fluoride mine and will aim to make calcium fluoride a
strategic resource in the development of China’s economy.
China Kings Resources to become leader
in calcium fluoride market
If the current deal proceeds as planned, China
Kings Resources will acquire 80% of the equity earnings of Ningguo Mining Ltd.,
and Ningguo Mining Ltd. will become a subsidiary company of China Kings
Resources. At the same time, China Kings Resources will be able to increase its
resource supply and resource quality, and resource distribution will improve,
and China Kings Resources hopes to become a leading enterprise in the calcium
fluoride market.
China Kings Resources is a commercial
conglomerate that specializes in the extraction, development, and sale of
calcium fluoride and is currently the leader of calcium fluoride supply,
extraction, production, and processing in China. It is also the only listed
company in the Chinese market to participate in both the calcium fluoride
industry and nonmetallic mining industry. This purchase of China Kings
Resources is the first step of a strategic plan to stabilize the company’s
operations by reinforcing the company’s calcium fluoride supply.
Calcium fluoride found in Asia, North
America, Europe, and southern Africa
Calcium fluoride is distributed all
throughout the world, and currently 40 countries have discovered the presence
of industrially viable calcium fluoride ore. In 2017, it is estimated that
approximately 500 million tons of calcium fluoride ore had already been
extracted, with about 270 million tons of ore being economically viable for
extraction.
Across the world, calcium fluoride
resources are mostly distributed throughout Asia, primarily in China and Mongolia,
as well as in Mexico, the United States, South Africa, Kenya, Spain, and the
United Kingdom. Among these countries, China and South Africa currently own the
largest supplies of calcium fluoride. With approximately 4.1 billion tons of
calcium fluoride economically viable for extraction, China currently owns about
15% of the entire world’s supply of calcium fluoride.
For more information on China’s fluoride
market, please check our China
Fluoride Materials Monthly Report.