MYSTEEL Service

Mysteel Business Visit to Tangshan & Chengde Mining/Steel Enterprises in May, 2016

As the steelmaking hub, Hebei Province has tried to cut steel capacity ever since 2013, and it’ll cut further capacity in 2016. It’s said by the governor of Hebei Province that the steel capacity will have been squeezed within 200 Mt by 2020, meaning 60% steel enterprises will be shut down in the future. Nevertheless, the billet market goes up and down in this March, bringing both bullish and bearish news. Iron ore market has fluctuated in the wake of the fluctuating billet price, and word came that miners had resumed production. What about the production recovery of mines with marginal cost? How long will the steel mill’s recovery last in the first half? What’s the real condition of capacity cut in Hebei province?

The 2016 World Horticultural Exposition will be held in Tangshan from April 29th to Oct 16th, and Tangshan Municipal Government is thus making every effort to control pollution and protect environment . Meanwhile, rumors flew that steel mills will limit production during the Horticultural Exposition. A lot of anti-pollution measures were taken during such large-scale activities as the 70th anniversary of the V-day Parade in 2015 and 2014 APEC Meeting in Beijing. Then how will the 2016 World Horticultural Exposition influence production of steel mills based in Hebei province and its nearby regions? Under the dual influences of policy and market, what will happen to mines based in Hebei?

To solve the above question, Mysteel Business Visit to Tangshan & Chengde China Mining/Steel

Enterprises will provide you with a great opportunity to discuss the hottest topic in the industry.

Date: May 16-20 2016 Tangshan & Chengde, China Attendee Number: 15

Highlights

 Production situation of mines based in Tangshan & Chengde during the Horticultural Exposition  Production recovery status of mines with marginal cost in Hebei at 45-55$  Time duration of steel mills production recovery in the first half  Current situation and prospect of northern mining enterprises  How to release the pressure of steel export for steel mills based in Hebei

For more information about Mysteel Business Visit to China Mining/Steel Enterprises in May 2016, please contact Helen Huang at [email protected] Tel: +86 21 2609 4537 or Fax: 021-66896935

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Visit Agenda Date City Itinerary

May 15 (Sunday) Tangshan Afternoon: Arrive in Tangshan Inter-Continental Hotel

May 16 Morning: Guofeng Iron and Steel Co., Ltd. (Monday) Tangshan

Afternoon: HeSteel Group Mining Co., Ltd.

May 17 Morning: Tangshan Jianlong Iron and Steel Co., Ltd (Tuesday) Zunhua Afternoon: Haofang Mining Co., Ltd

May 18 Morning: Tangshan Rongxing Iron and Steel Co., Ltd (Wednesday) Qian’an Afternoon: Qian’an Longyu Industry & Trading LLC

Morning: Chengde Tianbao Mining Group Co., Ltd. May 19 Chengde (Thursday) Afternoon: Chengde Tiecheng Mining Co., Ltd.

Following is an additional item, you’re free to choose.

May 20 All-day sightseeing trip to Tangshan International Horticultural Tangshan (Thursday) Exposition

Note that the above preliminary itinerary is subject to alternation and the final edition will be published in due course before the visit.

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Introduction of the Enterprises to be visited: Registration Form 1. Guofeng Iron and Steel Co., Ltd. Company: A member of CISA, founded in 1993. A huge enterprise covering sintering, iron making, steel making and rolling Country: business. 8.5 mtpa for iron, steel and steel products, as well as Delegate 1: 1.2 mtpa cold-rolling products. 14,000 employees. The largest Title: producer and supplier of SPHC hot-rolled products in China. Tel: Delegate: Information Director Current Production Status: Normal Mob: Email: 2. HeSteel Group Mining Co., Ltd. HeSteel Group Mining Co., Ltd. is the wholly-owned subsidiary Delegate 2: of He Steel Group Co.,Ltd (HBIS). It’s set up in Sep. 2009, and it’s a large-scale state-owned enterprise whose main business Title: is to mine and process iron ore. Its main products include Tel: concentrate, molybdenum and ferrous alloy. Mob: Current Production Status: Normal Email: 3. Tangshan Jianlong Iron and Steel Co., Ltd. Subordinated to Jianlong Group, annual production of 2 million Delegate 3: 3 tonnes crude steel. Three blast furnaces of 450 m (capacity Title: factor 4.2). Two converters of 60 m3. One 265 square meters sintering machine. Main products include band steel, narrow Tel: strip and steel pipe. Mob: Delegate: Procurement Director Email: Current Production Status: Normal

4. Haofang Mining Co., Ltd. Annual production capacity of 1.5 million tonnes, it is the local largest beneficiation plant. Its main product is 66% Fe concentrate. The estimated production for 2015 is 0.6 million tonnes. Its production cost has 10 yuan/tonne advantage over the peer enterprises. Delegate: Sales Manager Current Production Status: Reduced Consultancy Fees 5. Tangshan Rongxing Iro n and Steel Co., Ltd. The company has six branch factories and three subsidiaries. No. of Delegate 1 2 or Above 2 Main products include 150x150-165x280 billet; Fees/company $2,600/each $2,300/each 280x360-360x410 billet; 1600x200 billet plate. Production capacity of 4 mtpa. Delegate: Sales Manager Fees: □$2,450 □$2,600 □$4’600 Current Production Status: Normal *The above price includes all the fees of Mysteel consultancy fee, accommodation, meals, car rent and payment for translation etc. after assembling in Tangshan 6. Qian’an Longyu Industry & Trading LLC Inter-Continental Hotel. Mainly producing 66% Fe concentrate, 3 mtpa. They predicted that the company only can achieve 1.5 million tonnes *The full payment shall be transferred to Mysteel within the production in 2015. Having 6 beneficiation plants. ROM stipulated days after signing the agreement, please refer to inventory totaled 3-4 million tonnes, graded around 25%. the agreement. Concentrate stock 0.17-0.18 million tonnes. The company planned to shut down in recent months due to gloomy sales. Delegate: Production Director Current Production Status: About to stop production Tangshan Hotel

7. Chengde Tianbao Mining Group Co., Ltd. It has exclusive mining rights to 3 mines based in Kuancheng, □FIVE-STAR HOTEL (Single__/Double__), ___Rooms Luanping and Longhua region, with the total resources of 1.46 *If you have extra requirement for the accommodation, billion mt. Meanwhile, it owns 13 beneficiation enterprises; Mysteel will charge for the additional fee. and it built 3 large-sacle beneficiation plants in 2009. Current Production Status: Normal Bank Account Details 8. Chengde Tiecheng Mining Co., Ltd. Beneficiary: Shanghai Ganglian E-Commerce Co., Ltd. Its ROM grade is 32%, and the Fe content of concentrate is Beneficiary's Add.: 68 Yuan Feng Road, Bao Shan District, Shanghai, 60%. It ceased production in Q4, 2015, and it’s expected to 200444, P.R. China resume production in April 2016. It owns 3 beneficiation Issuing Bank: BANK OF CHINA SHANGHAI BRANCH plants, and one of them has already restart production. Bank Address: B-2/F Baishu Bldg., 1230 N. Zhong Shan No.1 Rd., Current Production Status: Expected to resume production in Shanghai, China April Account No.: 4572 5924 0473 Swift Code: BKCHCNBJ300