Chinese Fluorspar Update 中国萤石现状

Liao Xinhua

Chairman, China Non-metallic Minerals Industry Association

Fluorspar Committee

廖新华

中国非金属矿产工业协会萤石专业委员会理事长

Agenda议程

• Introduction to CNMIA Fluorspar Committee

• Chinese Fluorspar Production and Demand

• Market Observation and Outlook

• Brief Introduction to Haojingda

• 萤石专委会介绍

• 中国的萤石生产与需求

• 市场观察与预测

• 豪璟达简介

China Non-metallic Minerals Industry Association Fluorspar Committee 中国非金属矿产工业协会萤石专业委员会 • One of the committees under CNMIA

• Founded in 1995

• Major functions • To provide a communicating and

exchanging platform for the enterprises in the fluoride industry

• To assist the development and growth of fluorspar industry To coordinate the communication with the central government offices and agencies

• To set up the fluorspar-related standards and regulations

• To keep regular contact and communication with the relevant domestic and overseas organizations for information exchange

• 非金属矿产工业协会下属委员会之一

• 成立于1995年

• 主要职责 • 为行业内企业提供沟通和交流的平台

• 帮助发展萤石工业 • 协调与中央政府机关的沟通 • 制定萤石相关的标准与规则 • 与国内外相关组织和机构保持联系交换信息

Fluorspar Production’s Business Environment: Government Policies 萤石生产之商业环境：政府政策 • Environmental Protection

• Ecological Red Line • Natural Protection Regions • Forest parks, ecological woods, water-

preserving woods

• The historically most strict environmental protection policies

• Air protection • Earth protection • Water protection

• Green Mine standards

• Mining license renewal delays

• Temporary and Permanent Shutdowns

• 环境保护 • 生态保护红线

• 自然保护区 • 森林公园，生态公益林，水源涵养林

• 史上最严格的环境保护政策 • 大气保护 • 土壤保护 • 水体保护

• 按照绿色矿山的标准打造矿山

• 刻意延迟采矿证续证

• 暂时与永久关闭

Fluorspar Production’s Business Environment: Resources 萤石生产之商业环境: 资源

• Resources Depletion • Most small-sized mines have

exited • Utilization of low-grade ores is not

sustainable • Many mid-/large-sized mines are

entering the ore depletion phase

• Lack of new sizable mines and resources. The replacement resources are scarce.

• Raw ore import from Mongolia

• 资源枯竭 • 大量小型矿山已基本退出。 • 低品位矿石不可持续。 • 许多大中型矿山进入资源枯竭阶段

• 缺乏大型矿山资源，后续接替资源匮乏

• 蒙古原矿进口

Fluorspar Production: Current Status 萤石生产：现状

• Number of fluorspar mines: 251 by end 2018, down from 1,200+ in end 2013 *

• All of the fluorspar productions are shut down in Xinyang, Henan (200,000MT capacity), Guangde, Anhui (300,000MT), and Qilianshan, Gansu (350,000MT)

• Some mines have expanded capacity as stimulated by the high prices, which accelerates the consumption of the resources

• The limited low-grade resources including tailings could be utilized

• Some new resources are discovered in the southwest and northwest regions. The production and transportation costs would be high.

• From net exporter to net importer 国

• Fluorspar export peaked in 1008 exceeding 1.3 million tons

• 2018 fluorspar volume net import

*Source: Ministry of Natural Resources资料来源：自然资源部

• 萤石矿数量：2018年底251个（2013年底超过1200个）

• 河南信阳地区（20万吨）、安徽广德地区（30万吨）、甘肃祁连山地区（35万吨）萤石生产全部退出

• 在价格刺激下部分矿山扩大了产能，加速资源消耗

• 有限的低品位资源包括尾砂得到利用

• 从净出口国变为净进口国

• 萤石出口峰值1998年超过130万吨

• 2018年萤石数量净进口

Export 出口 Import进口

MT Value价值 MT Value价值

CaF2 <97% 193,145 $ 55,070,685 419,019 $ 67,728,402

CaF2>=97% 202,317 $ 80,363,632 90,994 $ 27,330,797

Total共 395,462 $ 135,434,317 510,013 $ 95,059,199

Chinese fluorspar productions by USGS(x1,000MT)

美国地质调查局之中国萤石产量(千吨）

Chinese Production World Production China/World %age

中国产量 世界产量 占世界产量比例

2009 2,900 5,460 53%

2010 3,300 6,010 55%

2011 4,700 7,520 63%

2012 4,400 7,070 62%

2013 3,800 6,770 65%

2014 3,800 6,390 59%

2015 4,400 6,670 66%

2016 3,800 5,930 64%

2017 3,500 5,680 62%

2018 3,500(est.) 5,800(est.) 60%

Chinese Fluorspar Production by the Fluorspar Committee 萤石专委会之中国萤石产量

1. Based on the provincial production numbers

2. Based on the consumption estimates

1. 基于各省的生产数字

2. 根据消费推算

2018 Fluorspar Production by province (estimated, MT) 2018年各省萤石生产（估计数，公吨）

• Inner Mongolia内蒙 800K

• Hunan湖南 850K

• Jiangxi 江西 850K

• Zhejiang浙江 900K

• Anhui安徽 400K

• Fujian福建 600K

• Henan河南 350K

• Gansu甘肃 220K

• Guangdong广东 150K

• Hebei河北 100K

• Hubei/Chongqing/Guizhou/Sichuan/

Guangxi/Yunnan/Liaoning/Xinjiang/etc

鄂渝贵川桂滇辽新等 700K

• Total 6,020,000MT

Fluorspar consumption by industry 按工业计算萤石消耗量 (x1,000MT)

*

Source资料来源

*Baichuan Info 百川资讯, except for 2017 AlF3 output from DFD’s industry statistics 除2017年氟化铝产量来自于多氟多行业统计, and FH2019 estimate 及2019上半年氟化铝产量为估计

**Customs stats海关统计

***Fluorspar Committee estimates萤石专委会估计

2017 2018 FH2019上半年

Output产量

Fluorspar consumption

萤石消耗

Output产量

Fluorspar consumption

萤石消耗

Output产量

Fluorspar consumption

萤石消耗

HF氢氟酸* 1,450 3,335 1,640 3,772 857 1,970

AlF3氟化铝* 684 1,026 743 1,115 357 536 Spar >97 net export萤石粉净出口** 82 111 130 Spar <=97 net export萤石块净出口** 25 -226 -123 Met spar 萤石块*** 400 360 180 Briquettes萤石球*** 350 450 250

Other industries (glass fiber, welding rods, glass, ceramics, metals…)其他工业（玻璃纤维，焊条，玻璃，陶瓷，金属，等）***

500 490 230

Total总共（千吨） 5,718 6,072 3,173

The Last Week of September Weekly Price Comparison 九月最后一星期周均价比较 East China RMB/DMT 华东交货，人民币元/干吨

2017 2018 2019

制冷剂HCFC-22 ¥ 14,800 ¥ 21,500 45% ¥ 12,300 -43%

制冷剂HFC-134a ¥ 26,000 ¥ 30,000 15% ¥ 23,200 -23%

制冷剂HFC-125 ¥ 38,500 ¥ 28,000 -27% ¥ 19,000 -32%

HF氢氟酸 ¥ 12,500 ¥ 11,000 -12% ¥ 8,600 -22%

Acid Spar萤石粉 ¥ 2,400 ¥ 2,700 13% ¥ 2,700 0%

Observation and Outlook 观察与预测

• The capacity utilization of Chinese fluorspar production has peaked. The historical record of the annual production of over 6 million tons should account for 70% or higher of the world production.

• The resource depletion is critical. Most of the mines developed in 1980s and 1990s dominating the current fluorspar supply are facing the threat of ore depletion. Under the combined pressure of policy factors and resource depletion, the fluorspar production is expected to enter a downward spiral, with a significant decline in three to five years.

• 中国萤石产能利用率达到历史高点，年产量达到600万吨以上的历史最高位，占世界萤石产量70%以上

• 资源枯竭的形势严峻。尤其是建于八九十年代的矿山，作为现在萤石供应的主力军，大部分面临资源枯竭的威胁。在政策因素及资源枯竭双重夹击下，预计未来产量会进入下降通道，且三至五年后会有大幅下降。

Observation and Outlook 观察与预测

• Strong fluorite prices highlight the supply constraints in the markets where the prices of the downstream products have fallen sharply

• The impact of China to the world fluorspar industry has changed from the major fluorspar exporter and downstream fluorochemicals import-dependent to the exporter of the downstream fluorochemicals and the importer of fluorspar.

• China's demand for fluorine resources is at an all-time high and will continue to grow

• China's demand for fluorspar in the international market would gradually increase

• 在下游产品大幅跌价的市场中，坚挺的萤石价格凸显了供应紧张

• 中国对世界萤石产业的影响已经从过去的萤石主要出口国和氟下游产品主要依靠进口转变为氟下游产品的出口国和萤石进口国

• 中国对氟资源的需求量处于历史高位，并将继续增长

• 中国对国际市场的萤石需求将逐步增加

Haojingda Industrial Company 豪璟达实业公司简介

• Owns 2 mines in Shunchang and Jiangle, Fujian Province

拥有位于福建顺昌和将乐的两个矿山

• Proven reserves: 4.0 million MT 探明储量：400万吨

• Expected add’l resources: 7.0 million MT

预计更多储量：700万吨

• Green Mine qualification: zero emission

绿色矿山认证: 零排放

Shunchang Flotation Plant – the largest single fluorspar processing plant in China 顺昌浮选厂 – 中国最大单体萤石处理厂

• Ore processing capacity: 600Ktpa 矿石处理量：60万吨/年

• Lowest production cost 最低的生产成本

• High recovery rate: 95% (tailing CaF2 <2%) 高回收率：95% （尾矿氟化钙含量<2%）

• Stable quality: Automation (6 workers per shift)

质量稳定：自动化（每班6个工人）

• Recycled economy: currently half capacity to process the third-party tailings with 7%+ CaF2

循环经济：现在一半产能用于处理第三方含CaF2 7%及以上的

尾矿

Thank you!

谢谢！