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Sichuan Hongda’s subsidiary Sichuan Hongda Resources Development hopes to launch a vanadium-titanium production project soon, reports 163.com, citing a company filing.

 

Hongda Group signed a vanadium-titanium exploration agreement with the Panzhihua government in 2007, but made no substantial progress afterwards.

 

Liu Canglong, the chairman of Hongda Group, recently visited Panzhihua to conduct negotiations with the local government, leading to speculation that the project is due to begin.

 

The project, in which a total of 47 billion yuan is set to be invested, is expected to generate revenue of 100 billion yuan.

 

The project will be constructed in three phases. In the first phase, the company will invest 22.3 billion yuan and have a raw material mineral capacity of 10 million tons. Annual production capacities will amount to 100,000 tons of high-end rutile titanium white powder, 50,000 tons of titanium alloy, 10,000 tons of vanadium pentoxide, 9,100 tons of chromic anhydride and 1.08 million tons of vanadium casting billet.

 

In addition to the vanadium-titanium project, Hongda is also constructing a molybdenum and copper processing project. The company previously announced that it will invest 10.188 billion yuan in 40,000 tons of new molybdenum smelting capacity, and 400,000 tons of new copper smelting capacity.

 

Sichuan Hongda is involved in the chemical, metallurgical and mineral industries. The main products the company offers include zinc ingots, monoammonium phosphate and zinc oxide ores. Shifang Honda Development, Hongda's largest shareholder, has sold two billion yuan of shares in the company since the beginning of this year.