In September 2011, CITIC Metal, teaming up with Baowu Group...

In September 2011, CITIC Metal, teaming up with Baowu Group (formerly known as Baosteel Group), Ansteel Group, Shougang Group and TISCO, established the Hong Kong-based China Niobium Investment Holdings Limited, and ac- quired a 15% equity stake of Companhia Brasileira de Metalurgia e Mineracao (CBMM), the world’s largest producer of niobium. CITIC Metal held a 33.3% stake in the consortium. Since the investment, CBMM has consistently delivered stable performance and good earnings and maintained high dividend payout ratio.

Niobium is of strategic importance to the national economy and defense. As a country with low niobium reserves, un- desirable grade, many paragenic ores and difficulties to develop, China is currently 95% reliant on foreign sources of niobium and the single largest consumer of CBMM. The investment has guaranteed stable supply of niobium to China, creating synergy with the Company’s niobium product lines and enhancing strategic ties between the Company and the downstream clients.