On September 9, Liangshan Mining Company’s 100,000 tons/year cathode copper project kicked off. It is another key project of the company following the successful launch of the 100,000 tons/year anode copper project. Based on ISA copper smelting technology of the largest open-cast copper mine in southwest China,Liangshan Mining Company strives to build the No.1 copper company of Sichuan supported greatly by Huili Kunpeng Copper Company.

As the No.1 in nonferrous metals resources in Sichuan, Huili County remains a leading position particularly in available reserves of copper and nickel. In June 2006, the CPC Committee and the People’s Government of Liangshan inked an agreement with Yunnan Copper Group and Liangshan Mining Company to invest in a copper-nickel mining project in Huili County. With a budget estimate of RMB one billion, the project was completed and went into operation in 2008. It aims to grow into the largest copper-nickel mining project of Sichuan with an annual output of 100,000 tons of anode copper plate, 10,000 tons of nickel, 300,000 tons of sulfuric acid, 300,000 tons of iron pellets and 350,000 tons of magnesium, more than RMB 10 billion annual industrial output and annual pre-tax revenue of RMB 0.5 billion.

In September 2007, Huili County Kunpeng Copper Company was jointly established by Liangshan Mining Company and Sichuan Lala Copper Mining. The company has a registered capital of RMB 0.35billion and is controlled by Liangshan Mining Company.

With the total investment of RMB 1.48 billion,the project kicked off in May 2008 and was put into trial production in July 2010. The company is mainly engaged in production and distribution of anode copper and industrial sulfuric acid, with annual production capacity of 100,000 tons of anode copper and 320,000 tons of industrial sulfuric acid.

The 100,000 tons/year anode copper smelting project has introduced core technology from Australia and adopted ISA furnace oxygenenriched top-flown immersion smelting technology featuring globally-leading high automation and domestically-leading excellent environmental protection.

Targeting at the strategic positioning of global multi-metal mining company, CHINALCO is striving to foster the biggest and most competitive copper company and rare earth company of China. The successful starting of Kunpeng project of Yunnan Copper Group indicates that CHINALCO has given priority to its copper business, which is a major move to optimize and enhance the copper business. CHINALCO is committed to building 4 copper smelting bases, including the Kunpeng copper project.

On May 29, 2010, in the project promotion meeting held in Kunming, Huili County Government and Yunnan Copper Group signed“Agreement on Further Strengthening Strategic Cooperation Framework”, deciding to carry forward the second phase of Kunpeng Copper under Liangshan Mine Company in Huili County during the 12th Five-Year Plan period,so as to increase anode copper production capacity by 50,000 tons/year and high-purity cathode copper production capacity by 150,000 tons/year. Yunnan Copper Group will give priority to the project and plan to make a total investment of approximately 3 billion, and eventually achieve a production capacity of anode copper of 150,000 tons/year and that of highpurity cathode copper of 150,000 tons/year,thereby starting a new journey of all-around strategic cooperation. Yunnan Copper Group will provide the 100,000-ton cathode copper project with technical services.