Power Development (01277): The Jinhongshi project was officially put into production on October 1, 2026

Zhitong Finance App News, Power Development (01277) announced that the Jinhongshi project was officially put into production on October 1, 2026. The status and detailed progress of the Jinhongshi project are as follows:

The rutile project is located in Rotifunk, Moyamba District, Sierra Leone. Minenet's mining license covers an area of about 117 square kilometers. According to data provided by Minenet, the rutile project area has reserves of about 4,532 million tons. The Group has exclusive rights to explore, mine, process and sell within the 50 square kilometers specified in the license.

The first production line in the first phase has been completed and commissioned, and officially put into production on October 1, 2026. The second production line is expected to be completed in mid-October 2026, and the third production line is expected to be completed in early November 2026.

The first stage includes 3 production lines, with a total processing of about 6 million tons of raw ore per year, with an annual production capacity of about 220,000 tons of heavy ore (according to the latest grade and recycling rate). The output is expected to be about 26,000 tons within 2026. The second phase will add 2 new production lines within 12 months on the premise that the first phase is stable operation and sufficient resources are confirmed. The total number of production lines reached 5. After complete commissioning, the total annual processing of raw ore reached about 11 million tons, with an annual production capacity of about 330-360,000 tons of heavy ore.

All mineral products are distributed according to 80% Metal Mining and 20% Minenet, and both parties are responsible for sales. The heavy ore produced by the rutile project is rich in valuable minerals such as rutile, titanium concentrate, and zircon sand. Customers cover midstream and downstream zirconium and titanium processing plants, chlorinated titanium dioxide, titanium sponge, titanium alloys, high-end welding materials and zirconium products processing enterprises. At present, sales channels to the Chinese market have been established, and customer resources cover Guangdong, Guangxi, Hainan, Shandong, Jiangsu, and Liaoning regions. The sales channel prioritizes supply to zirconium and titanium selection plants, and gradually develops to terminal manufacturers.

The products of the rutile project refer to price information from the industry think tank rutile, titanium concentrate, and zircon sand, and use a market-based grade-linked pricing mechanism to determine the final sales price by combining factors such as grade, impurity indicators, order size, and payment methods.

The products of the rutile project are of high quality heavy ore, containing 30% to 45% rutile (95% titanium dioxide content). It is the core raw material for the production of titanium dioxide and aerospace-grade titanium sponge, and is a scarce domestic mineral resource.

In terms of production, after the first phase of the three production lines are put into operation, the rutile project is expected to reach a production capacity of 220,000 tons of heavy ores with a design capacity of 220,000 tons in December 2026. After the first phase of stable operation, the Group will carry out the construction and commissioning of 2 additional production lines in the second phase.

In terms of sales, the heavy ore products of the rutile project will initially be the main sales direction for the Chinese market. In the future, the company will promote products globally according to market conditions, continuously enrich the customer structure, and further enhance the competitiveness and sales scale of products in the international market.

The official commissioning of the Jinhongshi project marks the further diversification of the Group's overseas mining layout, and the entry of high-quality overseas production capacity into a new cycle of accelerated value release. In the future, the Group will make full use of the Group's mature mining operation experience. By optimizing mining and mineral processing plans and strengthening cost control throughout the process, the ruginshi project is expected to become a new source of revenue growth for the Group after delivery.