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By-products

Our other products include a small amount of shaped stone products, such as curved plates, moldings, fireplace components, tables, and special order products. The spalls and crushed stones generated from our mining and processing process can be used for industrial purposes.

As part of our efforts to be socially responsible, in addition to our main marble slab processing facilities, we also plan to construct a small processing plant in close proximity to our Zhangjiaba Mine, as a co-operative effort with local farmers, which will employ some of the local labor to produce small 2-cm thick cut-to-size marble tiles using remaining marble of various shapes and sizes. This processing plant is established to help local economic development and provide training to local citizens. We did not and do not expect to generate any material revenue or incur any material costs or expenses in relation to the operation of such processing plant. The waste materials from marble slab, tile and shaped stone production at our mine and processing plants will be sold at relatively low prices to the local factories as raw materials for their cement and calcium powder production. We expect the plant to commence production in 2012. The projected full production for the small 2-cm thick cut-to-size marble tiles and the raw materials for cement and calcium carbonate powder from 2014 onwards will be 100,000 m2 and 626,000 tonnes, respectively. The intent of such co-operative effort is to utilize the entire production volume of the marble blocks mined at our Zhangjiaba Mine and to minimize the final waste rocks from our mining activities.