China Gengsheng Minerals, Inc. announced this morning that it has forged a supply partnership for bauxite with Aluminum Corporation of China’s Gongyi Division, which produces bauxite from its mine in Gongyi City of Henan Province. This mine, with an estimated reserve of 12 million tons and estimated life of 25-30 years, will be used to supply 150,000 â€“ 250,000 tons of bauxite per year to Gengsheng as raw materials for refractory and fracture proppant products. According to the press release, the company will pay a slightly-below-market price for Chinalco Gongyi’s bauxite.
“This long-term strategic supply partnership is meant to ensure the stability of our raw material source for the foreseeable future,” commented Mr. Shunqing Zhang, Chairman and CEO of the Company. “Chinalco’s bauxite mine is about 15 kilometers (9.3 miles) from our manufacturing facilities in Gongyi and we are very pleased to secure a favorable price for their products. In
light of the tumultuous commodity prices over last year, we see this partnership as a strong positive for the long-term sustainability and growth of Gengsheng.”