it must have been a while since you went to chengde. late last year they commissioned the worlds largest and most advanced blast furnace (taking the title from the koreans) and they are building another couple of such units now.
I think you have also overlooked the massive increase in output of vanadium which is a serious cash cow for the group. when they start feeding in the axo ore they will generate such a massive stockpile of vanadium that they will be the only players and price makers for this commodity.
the axo ore contains twice the amount of vanadium compared to the ores they currently feed into the chengde operations. in fact the future viability of the chengde operations will be heavily reliant on the supply of ore from axo. basically they (hebei) have good cause to see axo into production or acquire it.
AXO Price at posting:
39.0¢ Sentiment: ST Buy Disclosure: Held
