China Baoli Tech (00164) has announced significant progress in rolling out its dry grinding and dry separation business in Mongolia. By steadily advancing its project pipeline, the group is laying the groundwork for future growth in mineral processing while championing more efficient and eco-friendly resource development practices.
Following the successful delivery of consulting services to its project partner, the Mongolian iron ore project has now entered a crucial development phase. This achievement marks a pivotal milestone in the project's advancement, underscoring the group's technical expertise and its growing involvement in implementing dry grinding and dry separation solutions. The project partner has completed procurement of core equipment, with a portion already cleared through customs and transported to Mongolia for deployment at the site.
To support the installation, commissioning, and operational readiness of the equipment, the company has dispatched a team of technical specialists to the mining site. These experts are providing on-site assistance to calibrate and test the machinery, ensuring optimal performance. With logistics, administrative, and technical preparations now complete, the project has officially moved into the construction phase, setting the stage for smooth and coordinated progress among all parties involved. The first batch of processed iron ore concentrate is expected to be produced shortly, marking a significant milestone in the group's operational development.
The group is also reporting encouraging advancements in its Mongolian coal processing project. Infrastructure construction has been finalized, including the mining camp, staff accommodation, and other essential facilities, while recruitment efforts targeting both mainland Chinese and local workers are already underway. The group believes that building a capable and locally integrated workforce is vital to the project's successful execution and long-term operations. Currently, procurement of processing equipment, necessary fuel, and other raw materials is in progress. Although the foundational work is complete, the project still requires additional resources, funding, and operational preparation before it can achieve full production.
Recent trends in the coal market have been favorable, with coal prices rising notably and the overall sector showing renewed upward momentum. Management views this positive macro environment as a timely opportunity to accelerate the development of the Mongolian coal project. The group will continue to closely monitor market conditions and evaluate appropriate actions to advance the project in a disciplined and commercially viable manner.
Alongside project development, the group has initiated discussions with several established suppliers, distributors, and industry players engaged in bulk trading of mineral products. These talks are aimed at exploring potential off-take agreements, distribution channels, and long-term sales partnerships for the group's processed coal and iron ore products. Some prospective distributors have already begun conducting due diligence on the group and have initiated onboarding procedures. This marks positive progress in building downstream market relationships and securing potential clients for future output. The group aims to establish reliable off-take routes for its processed coal and iron ore products from the Mongolian projects, thereby ensuring market access and supporting commercial viability as production capacity expands.
In addition to the existing Mongolian iron ore project, the group has also begun evaluating potential iron ore projects across Africa. This initiative is designed to identify opportunities with sufficient and suitable resource potential, growth prospects, and strategic value for its dry grinding and dry separation operations. By exploring opportunities in other regions, the group seeks to diversify its resource base, expand its project pipeline, and reduce reliance on any single market or jurisdiction.
The board believes that the dry grinding and dry separation business offers significant growth opportunities for the group and aligns with global industry trends emphasizing sustainable and environmentally responsible mining practices. The board will continue to monitor the development of this business segment closely and will keep shareholders and potential investors informed of any major developments in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
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