Lomon Billions to acquire control right of RGM project
2017-08-04 17:53:28 [Print]
Lomon Billions made an announcement on late 2 of August that its wholly owned subsidiary of Billions (Hongkong) Co., Ltd. signed a " RGM Memorandum" with Brazilian Mineracao Santa Elina Group Company on 31 July, 2017, planning to acquire the control right of RGM project and cooperate with MSE Group on the development and operation of the project.
According to the announcement, RGM is the owner and operator of the South Atlantic project and the Raka Ronnie project. The South Atlantic project, including 4 mining areas, is located in Brazil while Raka Ronnie project is located in Uruguay. The two projects unite to form a mineral resource of 1.5 billion tons, which is able to provide sufficient titanium ore for production of 400,000tpy of titanium dioxide via chloride process production lines for 20 years in a row.
The company noted that the acquisition of control right for RGM project enables the company to obtain sufficient titanium ore for Rich-titanium material project and chloride process production lines at prices below the market average ones, so production cost of titanium dioxide reduces and the product competitive advantage improves; new profit growth point can be found through backward integration strategy; transnational corporation management makes the company gain valuable experience in overseas management.
According to the announcement, RGM is the owner and operator of the South Atlantic project and the Raka Ronnie project. The South Atlantic project, including 4 mining areas, is located in Brazil while Raka Ronnie project is located in Uruguay. The two projects unite to form a mineral resource of 1.5 billion tons, which is able to provide sufficient titanium ore for production of 400,000tpy of titanium dioxide via chloride process production lines for 20 years in a row.
The company noted that the acquisition of control right for RGM project enables the company to obtain sufficient titanium ore for Rich-titanium material project and chloride process production lines at prices below the market average ones, so production cost of titanium dioxide reduces and the product competitive advantage improves; new profit growth point can be found through backward integration strategy; transnational corporation management makes the company gain valuable experience in overseas management.
Rutile Conc TiO2 95%min In port China
Unit:RMB/mt
China titanium tetrachloride producers' sales to production ratio statistics by province by month
Unit: %
