China Magnesium Corporation has finally gained funding approval to begin production ramp-up at its upgraded and expanded Pingyao magnesium plant in Shanxi province of northern China.
CMC says the RMB30M 1-year working capital loan from the Industrial and Commercial Bank of China enables it to begin draw-down in March, with full production targeted by June 30.
Although commissioning of the 91.25%-owned plant following integration of the old and new plants was completed in October, frustrating delays in arranging working capital limited December half-year production at Pingyao to just 83t of pure magnesium, a fraction of nameplate capacity.
It says the delay has been frustrating, particularly as agreement was “imminent” for much of the year, but directors believed local working capital funding was the most appropriate funding option for working capital.
CMC aims to complete its 100% acquisition of Chinese ferrosilicon producer Ningxia Tianjing Tianda Metals Smelting before the end of April.
So it's way past June 30 now, how about an update?????
CMC Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
