AXO (ASX) very interesting on hebei steel

This is the merged entity that hold Chendge, note the last paragraph in relation to setting up a mining company.

Also note the second article below in relation to the profits from vanadium for Chengde.

Hebei steel industry boosts consolidation pace

Hebei Iron and Steel Group have launched businesses and resources integration by setting up international trade and mining companies after its debut on June 30. With an overall capacity of more than 31 million tonnes per year, the group has overtaken Baosteel as China’s largest steelmaker.

In July, it produced 2.84 million tonnes of pig iron up by 17.67% YoY; 3.07 million tonnes of steel up by 13.12% and 2.64 million tonnes of steel products up 10.34% YoY created sales revenue of CNY 18.40 billion a profit and tax of CNY 1.13 billion and a profit of CNY 790 million.

The group integrated the foreign trade businesses in its subsidiaries like Tangshan Steel, Handan Steel, Xuanhua Steel, Chengde Steel and Wuyang Steel by setting up the Hebei Iron and Steel Group International Trade Company. It also plans to establish a mining company to consolidate mineral resources in its subsidiaries.

http://steelguru.com/news/index/2008/08/31/NjA5NjI%3D/Hebei_steel_industry_boosts_consolidation_pace.html

Vanadium held up the profit of Chenggang for H1 of 2008

It is reported that during H1 of 2008, Chengde Iron and Steel of Hebei Iron and Steel Group had a sale income of CNY 10,004 million.

During the first six months, Chengde Iron and Steel had a vanadium slag output of 73,540 tonnes increasing by 18,343 tonnes from the same period in 2007 and produced vanadium products of 5,461 tonnes increasing by 1,601 tonnes. The output of V2O5 topped 1,000 tonnes per month in May and June in line.

From January to April, the price for vanadium products once went down but rebounded and hiked since the middle of April. Noticing this, Chengde Iron and Steel increased the production of vanadium products and especially that of 80 ferrovanadium, which had a higher value added, while lifted the pass rate of 80 ferrovanadium. Therefore, Chengde Iron and Steel secured a good result for the first half of 2008 with the support of vanadium products.

http://steelguru.com/news/index/2008/08/28/NjA1ODM%3D/Vanadium_held_up_the_profit_of_Chenggang_for_H1_of_2008.html

So AXO has an offtake partner that is make a profit from its vanadium operations and could make much more with the Balla Balla concentrate and is also looking at setting up its own mining operation?

How long will it be until AXO is taken from us?