Company Study of Yunnan Copper Co.

Yunnan Copper Co., Ltd specializes in the smelting now, and its copper refining capacity is 350 thousand tons, belonging to the top three in China copper smelting industry. Along with the directional increase as well as the assets input in the future, the company will gradually become a resource and smelting company.

Yunnan Copper Co., Ltd acquired the equities of Yuxi Ore, Chuxiong Ore Smelting, Diqing Ore and Jinsha Ore, which enabled the total copper reserves of the company to amount to 1.4893 million tons, and the average grade is 0.93%.

The main business income structure of Yunnan Copper Co., Ltd is comparatively steady, which mainly includes cathode copper and copper rod. In 2006, the accumulated income of the two accounted for 89.02% in the main business revenue. The revenue of cathode copper was RMB 2.896 billion, RMB 4.692 billion, RMB 9.293 billion and RMB 20.292 billion from 2003 to 2006, accounting for 70.77%, 65.23%, 69.33% and 72.31 respectively.

All the copper assets of Yunnan Copper Group will be integrated into Yunnan Copper Co., Ltd by 2010; then the whole copper assets will go on public, in addition, the company will hold 10 million tons copper resources, and achieve annual output of 400 thousand tons of copper concentrates as well as 600 thousand tons of refined copper and copper rod.