China Baoli Technology (00164) announced on September 23 that it has entered into a subscription agreement and shareholder agreement with Hong Kong Huaying Mining Technology Co., Ltd., Zhuoneng Global Limited and Guotong Group Limited, under which China Baoli Technology will acquire new mining technology, that is, the company's gamma ray technology and know-how will be integrated into Huaying Mine's dry mill dry dressing technology, so that it can be applied to ultra-poor magnetites that lack water resources.
Bloomberg News agency reported that throughout the dry grinding process, the mining process no longer needs to consume water, so it can solve the toxic water pollution caused by traditional wet separation mining technology. Therefore, the relevant move is a meaningful step for China Baoli Technology, representing the company's transformation into an environmental protection enterprise.
For investors, the move has significantly raised the awareness of social and corporate governance (ESG) of China Baoli Technology, which they believe will improve the company's finances and bring better returns. According to Calastone, a fintech company that provides a trading network for the fund industry, as of the end of the quarter in September, australia's ESG funds recorded a new net entry of $1.17 billion, and the net entry of the third quarter of this year is currently the largest, exceeding the total number of people in the quarter since 2019.
Some mainland media pointed out that the mainland has launched the first "carbon neutral" theme bond fund to continue to promote the guarantee of "carbon neutrality" achieved by President Xi Jinping in 2060 in line with national policies, and the bond fund recorded 389 million yuan in the first month.
In addition to investor interest, government support is also another catalyst for China's Baoli Technology share price, China has tightened quality control of iron ore since July this year, and recently China's ecological and environmental departments issued preliminary guidelines for a total of emission levels from October 2021 to March 2022, including plans to reduce production at steel mills in 64 regions across the country. Therefore, the new technology of China Baoli Technology will greatly improve the overall steel content and help industry companies to reach the environmental protection scope set by the state to curb pollution.
In addition, the mainland's recent electricity price reform plan is released, which is bound to push up the cost of electricity for enterprises, and for enterprises, in order to maintain competitiveness, relying on new technologies to reduce electricity consumption is particularly critical, China Baoli Technology has made up for this important link for the iron ore processing industry.
On October 10, China Baoli Technology and Angang Group Mining Co., Ltd. reached a strategic cooperation - Baoying 5 million tons of new environmentally friendly mineral processing production project signed a contract, the project uses China Baoli Technology's dry grinding dry dressing technology, can reduce energy consumption (saving 50% of electricity consumption) and pollution emissions in the processing process.
It is understood that the traditional magnetite beneficiation process is "three sections and one closed-circuit crushing + multi-stage wet ball milling, multi-channel magnetic separation", which has the disadvantages of complex process flow, large investment amount, high energy consumption, etc., and the cost of processing difficult ore is high, and the refined powder grade is difficult to meet the requirements.
The dry grinding dry separation technology is mainly innovated in the grinding and dressing links, and according to the characteristics of iron ore, different equipment is selected to achieve dry milling dissociation; For fine powder minerals after the use of dry grinding, the mineral processing medium is changed from aqueous medium to an air medium in the sorting process, and the ore powder achieves a high dispersion state through the air, enters the combined pneumatic magnetic separation device, efficient separation, and realizes anhydrous beneficiation. In 2012, the dry grinding and dry selection technology successfully applied for three invention patents and one utility model patent.
The background of the partner Angang Group Mining Co., Ltd. naturally can not be ignored, one of the large central enterprise groups of Angang Group's wholly-owned subsidiaries, Angang Mining Headquarters is located in Anshan City, Liaoning Province, the main development and utilization of mineral resources of state-owned super large mining enterprises, for the domestic control of iron ore resources, the largest production of the company, with advanced technology, low-cost operation mode, set prospecting, mining, mineral processing, sintering, pellet production, mining process research and development and design, engineering technology output as one, A leading metallurgical mine enterprise with a complete industrial chain.
The company has seven large iron mines, six large ore concentrators, a modern sintering plant, two pellet factories and four auxiliary material mines such as limestone, manganese ore and activated limestone. The business covers five cities, and now has a total production capacity of more than 230 million tons of mining and stripping, 65 million tons of mineral processing capacity, an annual output of 18 million tons of iron concentrate, 4 million tons of sinter, 8 million tons of pellets, and 6 million tons of limestone.
This is a heavy attack of China Baoli Technology, and can reach cooperation with Angang Steel, one of the large central enterprise groups, which shows that the scientific and technological content of China Baoli Technology is recognized, and it also means that there will be more project cooperation opportunities in the future, which naturally makes investors look forward to the prospects of China Baoli Technology.
As we all know, at present, China has proposed a "double carbon target", on this basis, the provinces need to complete the annual "energy consumption double control" goal, the challenge is undoubtedly huge, and this requires scientific and technological empowerment, just as China Baoli Technology's dry grinding dry selection technology, to meet the current market needs, the prospect is undoubtedly very broad.
Obviously, this will also be able to achieve a win-win situation for all parties, not only to bring additional income to China's Baoli Technology, but also to enhance the comprehensive utilization efficiency and market competitiveness of domestic iron ore resources, and contribute to the country's realization of the double carbon target and energy consumption control.
In fact, this is only one of the core values of China's Baoli Technology, and the company's recent actions show that the company's investment value may be emerging.
On 23 September, the Company entered into a subscription agreement and shareholder agreement with Hong Kong Huaying Mining Technology Co., Ltd., Zhuoneng Global Limited and Guotong Group Limited to jointly establish and invest in a cooperative company that will mainly provide new application services to mining companies to enhance the efficiency and productivity of mining and beneficiation processes.
For example, according to the maritime iron ore price index, the current iron content of 58% and iron content of 65% iron ore price difference of 40%, the newly applied enhancement technology can significantly increase the total iron content in the concentrate, help mining companies to achieve huge economic benefits, while helping mining companies to meet the environmental parameters set by China to curb pollution.
The above cooperation is expected to expand the company's gamma ray business and improve the company's profitability, thereby bringing long-term benefits to the company's shareholders.
In addition, on October 7, the Company recently completed the issuance of 186 million rights shares, which will raise about HK$74.43 million, and the Company intends to use approximately 20% (14 million yuan) of the net rights issue amount to repay trade and other accounts payable, about 10% (about 7 million yuan) to pay the annual license fee of the train media platform, about 50% (35 million yuan) to repay bank and other loans, and the remaining about 20% (14 million yuan) for general working capital. It can be seen that the smooth issuance of the rights shares provides a good financial foundation for the development and growth of the company's future business.
In addition, the company also recently completed the "10-in-1" operation, while reducing the par value of the consolidated shares from 1 yuan to 0.01 yuan, and the income of 368 million yuan generated by the share capital reduction will be transferred to the surplus account to offset the company's accumulated losses. Since then, the company's "historical problems" have been better solved, major operational risks have been resolved, and various businesses have also moved on the right track.
In short, on the basis of straightening out the company's accounting problems and obtaining funds, with the introduction of a variety of new crown pneumonia control measures introduced by the state, commercial activities have gradually resumed, the company's original multimedia technology business and gamma ray traditional irradiation sterilization treatment services will further flourish, and under the blessing of the new iron ore processing business, the company's performance is expected to achieve rapid growth and create long-term value for shareholders, and the stock price will also be selected.