Asian Metal: Mr. Huang, please give us an introduction of your company and main business.

Mr. Huang: Located in Ganzhou, Jiangxi, tungsten capital of the world and hometown of nonferrous metals, and founded in 2015, Ganzhou Junxing Nonferrous Metal Co., Ltd. focused on beneficiation, processing and trading of tungsten and tin products in the initial stage and has gradually become a comprehensive enterprise integrating overseas development, beneficiation, production, smelting, deep-processing and sales of tin and tantalum-niobium products.

Asian Metal: How about your production and sales in 2019?

Mr. Huang: Our production and sales in the first three quarters of 2019 were relatively stable. During the transition period from old plant to new plant, we still have a way to go to reach the normal production capacity of 2,000 metal tons of tin concentrate and 1,500 tons of tantalum-niobium ore. We sign long-term orders with downstream customers since tin is a bulk commodity and hold back from selling to others now due to significant tin price changes in 2019. Our output of tantalum-niobium increased accordingly with higher processing volume of tin as tantalum-niobium is usually associated in tin ore. Holding regular stocks of tantalum-niobium, we sign long-term orders with downstream customers and do business based on firm orders. We expect a decline of about 30% in overall metal output in the second half of 2019 due to plant relocation and to resume to normal level gradually before the Spring Festival.

Asian Metal: What's your management idea amid current fierce competition in mining industry? What are your advantages in keeping developing?

Mr. Huang: The competition in global resources industry is extremely fierce at present and the world economic structure keeps changing. Adhering to the idea of technology first, excellent quality and faithful service, Junxing Nonferrous Metal kept developing overseas resources to ensure stable production, set up long-term diversified strategic cooperation with upstream and downstream companies to realize steady growth and adjusted strategies timely in past years by taking upstream and downstream raw material and supply and demand of products into consideration, resulting in steady development of the company. We participated in meetings, forums and seminars to communicate with, learn from and discuss with peers and continuously tried to find new development modes, expand resources and upgrade industry chain. Following the principle of managing ourselves prior to doing business, we march forward steadily in the industry with reliable production of tin products.

Asian Metal: What are your opinions about tin and tantalum-niobium markets in the first three quarters of this year?

Mr. Huang: Greatly affected by the world economic situation and the China-U.S. trade friction, tin market fluctuated violently in the first three quarters of 2019. As cost of tin ore producers and raw material traders kept moving up, suppliers with stocks were reluctant to sell at low prices. Chinese smelters continued to expand production in recent two years and cut TCs for tin concentrate to ensure production stability. From May and June on, some Chinese smelters began to cut production or produce discontinuously. So to speak, upstream and downstream companies of tin industry chain experienced a hard time and survived in a fissure in the first three quarters due to price changes. Prices for tantalum-niobium showed a continuous downtrend in the first three quarters and the decline was over 30%. Affected by the China-U.S. trade friction, increasing exchange rate and rising cost, major smelters consumed inventory and purchased and sold cautiously. On the whole, disregarding the China-U.S. trade friction, the market in the first three quarters faced imbalanced supply and demand caused by weak demand from end users to a large extent.

Asian Metal: Based on relatively pessimistic price trend of tin and tantalum-niobium in 2019, what do you think about the market in 2020?

Mr. Huang: Basically speaking, supply and demand are major issues. In terms of supply, we should focus on overall output of Burmese tin ore, newly-built mines and output of upgraded dressing plants; in terms of demand, it will keep changing under the influence of progress of the China-U.S. trade friction. As a relatively small metal among bulk metal commodities, tin is of strong market liquidity. China owns a complete industry chain and the impacts of overseas futures and funds are decreasing now. Prices in Chinese market are more influential in global market, indicating the position and global influence of Chinese tin industry. Tin prices are expected to go up steadily in 2020. Prices for tantalum-niobium keep going down this year and raw material suppliers begin to hold back from selling as the cost has reached the bottom line. Smelters adopting hydrometallurgy consume inventory and continue to purchase from hand to mouth, so tantalum-niobium prices stand basically stable recently and are expected to move up in short term. In the long run, tantalum-niobium market is not optimistic from the perspective of application and consumption. Disregarding the China-U.S. trade friction, the market depends on supply and demand and application of end products. In my own opinion, tantalum-niobium prices would still show a flat trend.

Asian Metal: What is your development strategy in the coming three years?

Mr. Huang: Based on current business, we will expand market shares, increase investment in mineral resources, develop upstream and downstream businesses, deeply cooperate with downstream companies and introduce new modes and new applications of products in the coming three years.

Asian Metal: Your new plant is under construction. Could you share something about the plant with us?

Mr. Huang: Located in Xinhua Industrial Park, Dayu, Ganzhou, the new plant will be constructed in three phases. The total investment for the plant is RMB380 million (USD53.34 million), including RMB180 million (USD25.27 million) for fixed assets and RMB200 million (USD28.07 million) as working capital. The construction of phase I project is underway now, which covers an area of 60mu and focuses on beneficiation industry, and basically finished. We expect to formally put it into production in the first half of 2020. After the project is completed and reaches design capacity, it would produce 3,000 tons of tungsten-tin concentrate and 5,000 tons of tantalum-niobium raw ore per annum. We are making preparations for phase II and phase III projects now.

Asian Metal: Besides the new plant, do you have any other adjustments on strategy and business?

Mr. Huang: According to the current situation, our plan for strategy and business is consistent with our plan for the coming three years, mainly including developing upstream and downstream businesses, deeply cooperating with downstream companies and focusing on new business modes and new applications of products. Meanwhile, we hope to discuss and explore development, prospects and future of tin industry and tantalum-niobium industry with more insiders and outsiders.

Asian Metal: Thanks for your wonderful comments. Wish Junxing Nonferrous Metal a brighter future under your leadership!

Mr. Huang: Thanks for your support over the past years. I'm looking forward to smooth cooperation between Asian Metal and Junxing Nonferrous Metal in the future.