China Armco Metals, Inc., a leading distributor of metal ore and non-ferrous metals and metal recycler throughout the People’s Republic of China, recently announced that the company’s wholly owned subsidiary, Armco & Metawise (H.K.), Ltd., has signed a contract to purchase 749,000 metric tons of Brazilian manganese ore fines. This supply of manganese ore has the potential of generating distribution revenue of $180 million USD over the next 16 months.
Magnesium ore is in high demand; approximately 90 percent of the ore is for the production of iron-manganese alloys used in the steel industry, a sector that is currently experiencing a rebound in China. In addition, magnesium ore is used in the production of aluminum, magnesium, copper, nickel and zinc.
Mr. Kexuan Yao, chief executive officer and chairman of China Armco Metals, Inc., commented, “Securing this contract is a significant step forward for our company’s metals distribution operation as we move through 2010. With the ability to sell this product into China under favorable terms we have significantly strengthened our overall supply capabilities.” Mr. Yao continued, “Upon successful delivery over the term of the contract, we are in a position to significantly boost our top and bottom line performance for the remainder of 2010 and well into 2011. We look forward to building on our relationships with this and other international suppliers in the coming months as we continue to see a strong environment for industrial metals in China.”