citicresources.com - CITIC Resources Holdings Limited > Our Business

The Group has broadened its business scope and positioned itself as a provider of diversified energy and natural resources with a particular focus on the oil business. Through a number of recent acquisitions, the Company has increased its exposure to well-established operations in these industries and is collaborating with leading industry players both inside and outside China.

As the Chinese economy continues to bloom, it is expected that domestic demand for virtually all raw materials and energy consumption will follow. We believe that the Company will benefit from the booming economy in the long run, and further enhance profitability and maximise shareholder value, by continuously upholding oil business as its core business and identifying new investment opportunities.

The Company's new business focus is supported by its ultimate parent, CITIC Group, Beijing, which has designated the Company as the principal holding company for its entire group's business in the natural resources sector. CITIC Group indirectly holds over 54% of the Company.

CITIC Group is the first commercial venture which has been formed since 1979 under a direct mandate from the PRC government. It has since evolved into a powerful commercial force in the country and dominates many industries in the domestic market.

The Company's key focus going forward is to boost the development capability, profitability and risk resistance of its businesses while leveraging both on its parent's unique position in the Chinese business world and on its witnessed abilities to further increase market penetration and strive for competitiveness.

The Company's businesses and interests in natural resources include:

the Portland Aluminium Smelter, one of the largest and most efficient aluminium smelting operations in the world,
the Coppabella and Moorvale coal mines in Queensland, which is one of only five producers of low-volatile "Pulverised Coal Injection" coal in Australia,
Macarthur Coal Limited and CITIC Australia Trading Limited which are involved in coal mining, mineral exploration and commodities trading respectively. Macarthur Coal Limited is listed on the Australian Stock Exchange, while CITIC Australia Trading Limited is an indirect wholly-owned subsidiary of the Company,
CITIC Seram Energy Limited, an indirect wholly-owned subsidiary of the Company, which is the operator responsible for managing and operating exploration and development at the Seram Island Non-Bula Block,
Tincy Group Energy Resources Limited, a 90%-owned subsidiary of CITIC Haiyue Energy Limited, which is in turn an indirect wholly-owned subsidiary of the Company, holds the right to explore, develop and operate the oilfield in the Hainan – Yuedong Block,
CITIC Oil & Gas Holdings Limited ("CITIC Oil & Gas"), an indirect wholly-owned subsidiary of the Company, owns 50% interest of JSC Karazhanbasmunai ("KBM") which is engaged in the development, production and sale of oil and holds the right to explore, develop, produce and sell oil from the Karazhanbas oilfield, and
CITIC Dameng Mining Industries Limited, a non wholly-owned subsidiary of the Company, which is in charge of the operation of manganese mining and the sale of refined manganese products in the People's Republic of China as well as the exploration of manganese mining in Gabon, Western Africa.

The above interests have been acquired since March 2004 and underscore the intent of the Company to be a strategic procurer of energy and natural resources for China.

Updated: 23 Apr 2010