China-color shares proposed to raise 1.785 billion yuan to increase the "rare earths" business

China Securities Network (reporter Zhou Huan) in the color shares (000758, shares bar) September 23 evening issued a plan to increase,　　The company intends to include the controlling shareholder China Nonferrous Mining Group Co., Ltd. not more than 10 non-public offerings of not more than 145 million shares, the issue price is not less than 12.31 yuan, the total amount of capital raised not more than 1.785 billion yuan. The fund-raising of 800 million yuan will be to China Nonferrous Metals (Shenyang) Metallurgical Machinery Co., Ltd. new plant construction projects to increase capital, for the implementation of relocation upgrade project, 450 million yuan will be used to the middle-color South rare earth (Xinfeng) Co., Ltd. to increase capital, for the implementation of 7000 tons/year separation project. The company said that the investment will help Shen Metallurgical machinery successfully completed the relocation upgrade, enhance its metallurgical machinery industry competitiveness. At the same time actively respond to the national integration policy of rare earths industry, accelerate the development of the south-color Rare earth project.　　In addition, the company through the replenishment of liquidity, control of financial risks, improve the overall competitiveness.　　Shenyang project is expected to be completed with an annual output of aluminum equipment, metallurgical equipment, general equipment, such as 287 sets of the plant, construction period of 2 years, the total investment of 1.54 billion yuan, the annual sales income of 1.87 billion yuan (including tax), the average annual profit of 240 million yuan, average annual net profit of 180 million yuan　　Medium-color South rare earth (Xinfeng) project total investment of 610 million yuan, annual sales income of 1.82 billion yuan (including tax), the average annual profit of 165 million yuan, the average annual net profit of 120 million yuan. The reporter learned that the rare earth is known as "industrial vitamins", the country is positioned as strategically important mineral resources. In order to protect and rationally exploit the advantageous mineral resources, recently, the Ministry of Land and Resources Research has determined the 2013 rare earth ore, tungsten ore and antimony mining Total Control Index, 2013 National Rare Earth Ore (Rare-earth oxide REO) Mining Total Control index of 93800 tons, of which the ionic type (mainly medium and heavy rare earth) Rare earth Ore index 17,900 tons, rock type (light) Rare earth Ore index 75,900 tons. In addition, 2013 of rare earth storage this week or will be settled, the industry said the plan to collect reserves in 10,000 tons, 2012, the Chinese-color shares have been involved in rare earths. Affected by this expectation, rare earths demand for light, manufacturers will also be low shipments, the market is relatively deserted.　　Analysts said that once the rare earths were put in place, they would reduce the supply of rare earths in the market, and the price of rare earths would steadily rise. China-color shares said that in recent years, our country has continued to strengthen the rare earth industry policy norms. Since February 2011, Ministry of Industry, Development and Reform Commission, Ministry of Land and Resources, Environmental Protection Department, Ministry of Commerce promulgated the implementation of the total number of Rare-earth mining control, rare earth mining and smelting separation of the mandatory production plan, the moratorium on mining permit issuance, improve industry access standards, the establishment of pollutant emission standards, The implementation of export tariff adjustment and export quotas and other policies to regulate the industry. To strengthen the policy management of the Rare-earth industry, in the long run, it is advantageous for the rare earth industry to enter a healthy and orderly sustainable Development road, which is beneficial to the development of industry leading enterprises, but the national rare earth industry policy or relevant competent department lawRegulatory changes in the short term may lead to fluctuations in the company's operating performance.