No way they would just throw out their strategy of investing in AU, and Moly...If anything they are ramping up their growth plans...see below Nov 2010 news.
Its just posturing IMO. Happy to accumulate at $1 level.
"Hanlong Group is pleased to announce to the signing of a cooperation agreement with the Export-Import Bank of China on Saturday 13 November 2010 in furtherance of its overseas expansion. According to the agreement, the Export-Import Bank of China will provide Hanlong Group with loans up to 1.5 billion U.S. dollars.
Based in southwest China's Sichuan province, Hanlong Group operates across a large number of industry sectors throughout China including mining, energy, pharmaceuticals, high technology, food and beverage, industrial chemicals, infrastructure development, tourism and real estate. Hanlong Group is one of Chinas largest private enterprises with more than 12,000 staff and 30 subsidiaries. The group has total assets exceeding 36 billion RMB with annual sales revenues of over 16 billion RMB.
"The Export-Import Bank provides Hanlong with the financial support needed in investing overseas. For a company to grow stronger, one has to go out and acquire resources," said Lou Guoqing, president of Sichuan Hanlong Group Co., Ltd., the holding company of Hanlong Group.
"Our bank supports Chinese companies with competitive advantages to go abroad," noted Yang Jianhua, vice president of Export-Import Bank of China, Chengdu Branch.
In October 2009, Hanlong Group, through its subsidiary, Hanlong Mining Investment Pty Limited, acquired a 55.4% stake in Australian company Moly Mines Limited (ASX/TSX: MOL), the fourth largest molybdenum mining company worldwide, to jointly explore the Spinifex Ridge Project, a molybdenum/copper mine. In October 2010, Moly Mines Limited signed an iron ore offtake agreement with Hanlong Metals Limited, an affiliate of Hanlong Mining Investment Pty Limited, for 100% of its production from Spinifex Ridge Iron Ore Project. Moly Mines Limited is planning its first shipment of iron ore in December 2010.
In March 2010, Hanlong Group, through its subsidiary, Hanlong (USA) Mining Investment Inc. signed an agreement with US-based General Moly, Inc. (NYSE AMEX & TSX: GMO), the largest molybdenum mining company in the world, for its acquisition of a 25% equity interests in General Moly, Inc.
In October 2010, Hanlong Group, through its subsidiary, Hanlong Energy Limited, signed a Funding Deed with Marenica Energy Limited (ASX: MEY) in relation to its 5 million AUD debt and equity funding to Marenica Energy Limiteds flagship Marenica Uranium Project. This is Hanlong Groups first investment in uranium, a strategic commodity for which the demand is set to rise significantly in the coming years.
Hanlong Groups overseas interests are solely in the mining resources sector and its base is in Sydney, Australia where it has built a multicultural team of mining and finance specialists. Hanlong Group has strategic relationships with a number of large Chinese steel mills. Our strategy is to develop an international portfolio of quality mining projects in key resources such as molybdenum, iron ore, uranium and coal."
MOL Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
