CITIC Dameng Mining possesses abundant manganese resources, and is a major electrolytic manganese metal (EMM) producer in China. Two operating mines in Guangxi owned by CITIC Dameng Mining, namely Daxin Mine and Tiandeng Mine, have manganese resources that account for about 22% of the total manganese resources at China in accordance with the Chinese Standard. In addition, CITIC Dameng Mining owns the exploration and mining rights to Montbeli Manganese Mine in Gabon through its 51% interest of shareholding in Compagnie Industrielle. Montbeli Manganese Mine is one of the largest high-grade manganese oxide mines in the world and currently undergoing the process of construction and development. The manganese processing facilities in the PRC are all located either on-site or near Daxin Mine and Tiandeng Mine, which allows efficient and cost-effective on-site operations from an economic point of view. Facilities associated with Daxin Mine include Daxin Concentrating Plant, Daxin Grinding Plant, Daxin EMM Plant, Start EMM Plant, Daxin Manganese Sulfate Plant, Daxin EMD Plant and Dabao Ferroalloy Plant. Facilities associated with Tiandeng Mine include Tiandeng Concentration Plant and Tiandeng Ferroalloy Plant. The non-manganese ferroalloy processing operations are performed at Guixin Ferroalloy Plant, which is located near Qinzhou Harbour. CITIC Dameng Mining is currently constructing an on-site Gabon Concentrating Plant for Montbeli Manganese Mine. The business of CITIC Dameng Mining can be divided into the following four segments: Manganese mining and ore processing, production of manganese concentrate and natural discharging manganese; Manganese downstream processing, production of EMM, manganese sulfate, silicomanganese alloy and EMD; Non-manganese ferroalloy processing, production of non-manganese ferroalloys, including high carbon ferrochromium; and Trading of various commodities such as manganese ore, EMM, chromium ore and sulfur.

Abundant manganese resources and large-scale operations offer competitive advantages for the manganese business of the Group. The Group benefits from economies of scale in terms of production and sales, and is able to maintain high product quality and stable product supply. The Group will continue to expand the manganese business by installing more production facilities and improving production capacity, which will further enhance the competitiveness of the Group in the manganese business and increase the profit attributable to the Group. In order to further develop the manganese business, the Group is continuing to work on a proposal in respect of its spin-off and separate listing on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The listing proposal remains subject to, amongst other things, the approval of the Listing Committee of the Stock Exchange and shareholders of the Company before it can proceed.

Updated: 16 Nov 2009