Asian Metal visits Jiangsu Cobalt Nickel Metal, Nantong Xinwei, Jiangsu Xiongfeng, Zhangjiagang Huayi and Galaxy Lithium (Jiangsu)

On September 19-21 2012, Joy Kong, Assistant Analyst of Asian Metal, in charge of cobalt & lithium markets and Claire Li, Marketing Manager of Asian Metal visited several enterprises in cobalt and lithium markets in Jiangsu and were warmly welcomed by local companies.

In the afternoon of September 19, Asian Metal visited Jiangsu Cobalt Nickel Metal Co., Ltd., Yan Guozhen from Jiangsu Cobalt Nickel Metal Co., Ltd. showed Asian Metal around the workshop of cobalt tetroxide, cobalt metal and cobalt powder and explained the production process. The raw materials of KLK are cobalt concentrates and white alloy and the company has the ability to process 300 metal tons per month of cobalt concentrates. The monthly output of cobalt tetroxide is 400t currently. In view of weak demand in cobalt metal market, the operating rate of cobalt metal is about 50% with an output of 90-100tpm.

In the morning of September 20, Joy Kong and Claire Li visited Nantong Xinwei Nickel & Cobalt Hightech Development Co., Ltd. and communicated with Hu Yude, Vice General Manager of Xinwei Nickel & Cobalt Hightech Development Co., Ltd. about current market. Mr. Hu accepted the interview from Asian Metal and he thought that cobalt market has entered the meager profit era and most cobalt salts producers have reduced output.

In the afternoon of September 20, Asian Metal visited Jiangsu Xiongfeng technology Co., Ltd.. Joy Kong and Claire Li exchanged views on cobalt market with Zhang Baoyu, President and Sales Manager of Jiangsu Xiongfeng technology Co., Ltd.. Mr. Zhang expressed that many cobalt salts producers cut output impacted by sluggish macro-economy.

In the morning of September 21, Asian Metal visited Zhagjiagang Huayi Chemical Co., Ltd.. Wen Bin, General Manager and Chen Jinhua, Vice General Manager of Zhagjiagang Huayi Chemical Co., Ltd. met Joy Kong and Claire Li. At present, the old factory is being transformed. According to Mr. Wen, after the transformation, the monthly production capacity will reach 150-200 metal tons. Meanwhile, they are building a new factory and they will produce lithium cobalt oxide then. At the same time, Mr. Wen and Mr. Chen fully recognized the service from Asian Metal and hoped Asian Metal do better in the future.

In the afternoon of September 21, Asian Metal visited Galaxy Lithium (Jiangsu) Co., Ltd.. Qian Qiongwei, Managing Director and Yan Xiaoxiong, Sales & Marketing Manager of Galaxy Lithium (Jiangsu) Co., Ltd. met Joy Kong and Claire Li. Firstly, Mr. Qian and Mr. Yan showed Asian Metal around the fully automatic production lines of the factory. Afterwards, Mr. Qian accepted the interview from Asian Metal.

Asian Metal thanks for the support from those companies and will continue to maintain a fair position to report the market situation.

Established in 2004, Jiangsu Cobalt Nickel Metal Co., Ltd. (KLK) is headquartered in Jiangsu Taixing Chemical Economic Development Zone which is a fine chemical development park with the most promising potential in China. Occupying a beautiful land area of 66,000 square meters, our company is easy accessible because of convenient location close to "Yangtze Delta" Economic Zone "led" by Shanghai, near the harbors of Yangtze River and with a distance of 10 kilometers to Nanjing-Jingjiang-Yancheng Highway and Beijing-Shanghai Highway.

Nantong Xinwei Nickel & Cobalt Hightech Development Co.,Ltd. is a wholly foreign-owned enterprise which has its independent legal qualification. It was founded in June, 2005 and covers an area of 30,033m2. Its registered capital is 5000,000 dollars and total investment is over 80,000,000 RMB. There are 170 employees, of which 30 are scientific and technical personnel and 10 have title of a senior professional post. Our main Products are cobalt carbonate, cobalt sulphate, cobalt electrowinning, cobaltosic oxide for the use of battery, copper electrowinning and nickel sulphate.

Jiangsu Xiongfeng Technology Co., Ltd. is a modern cobalt production enterprise, with scientific research, production and trade as a body. It is located in the Zhengyu Industrial Park of Haimen city, and the total investment reaches more than RMB180 million, with a land area over 80,000m2, and a total construction area of 38,000m2, and the annual production capacity of cobalt products is 1,600 metal tons. Our company imports cobalt concentrate as the materials, separating and extracting the valuable elements such as cobalt from cobalt ore through advanced hydrometallurgical technique. The whole process of design and content of science & technology have reached the same industry-leading level.

Zhangjiagang Huayi Chemical Co. Ltd., converted from Zhangjiagang Minfeng Chemical Co. Ltd, is a manufacturing enterprise of cobalt salts, nickel salts and copper salts. At present, the company mainly produce four series and more than 100 kinds of products, including cobalt sulfate, cobalt chloride, cobalt acetate, cobalt oxide, cobalt carbonate, cobalt nitrate, nickel sulfate, nickel chloride, nickel acetate, nickel sulphamate, nickel carbonate, nickel nitrate, nickel trioxide, nickel oxide, copper sulfate, copper chloride, cuprous chloride, copper oxide, cupous oxide, cupric acetate, cupric carbonate, cupric nitrate, cadmium red, cadmium yellow, black pigment, glass white, red, yellow, blue, deep blue and cobalt pigments. They are well sold in China, EU, America, Japan, Korea and Southeast Asia, etc.

Galaxy Lithium (Jiangsu) Co., Ltd. is a wholly owned subsidiary company of Galaxy Resources Limited. The production capacity of Jiangsu plant is 17,000tpy including lithium carbonate 99.5%min, 99,9%min and 99.99%min, the largest producer in the Asia-Pacific region and the fourth largest in the world. The Jiangsu plant is wholly-owned by Galaxy Resources Ltd ("Galaxy"). Galaxy is an Australian-based integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange (Code: GXY) and is a S&P/ASX 300 Index Company.

Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western Australia where it mines lithium pegmatite ore and processes it on site to produce a spodumene concentrate and tantalum by-product. At full capacity, Galaxy will process 137,000tpy of spodumene concentrate and 56,000 lbs per annum of contained tantalum. The concentrated spodumene is shipped to Galaxy's wholly-owned Lithium Carbonate Plant in China's Jiangsu province.