Proactive investors

Cement Operations (read more about these projects)

Prosperity's footprint in China

A - Yingde Dragon Mountain Cement Company Limited

Yingde Dragon Mountain Cement Company Limited (“YDM”) was formed in 2003 to manufacture cement and clinker for sale in the PRC. Prosperity Materials (International) Limited (“Prosperity Materials”), a company owned and controlled by David Wong, acquired a 25 per cent interest in YDM in 2004.

The Company’s subsidiary, Prosperity Cement Investment Limited (“Prosperity Cement”), signed an agreement on 25 January 2006 to acquire a 25 per cent interest in YDM from Prosperity Materials. Prosperity Cement signed a further agreement on 25 February 2006 to acquire the outstanding 75 per cent interest in YDM. YDM was registered as an FIE on 20 March 2006. Having obtained the requisite PRC Government approvals, Prosperity Cement was registered as the sole owner of YDM on 13 April 2006.

YDM has an annual designed saleable capacity of 5.9 million tonnes of cement and clinker.

B - Prosperity Conch Cement Company Limited

In order to capitalise on the strong demand for cement in Guangdong Province, Prosperity Conch Cement Company Limited (“PCC”), decided to build a modern suspension pre-heater cement production plant adjacent to the YDM plant. PCC plant was to produce high quality clinker and cement for sale in Guangdong Province of the PRC. The Group was offered the opportunity to invest in PCC alongside Anhui Conch.

PCC has an annual designed saleable capacity of 7.9 million tonnes of cement and clinker.

C - Anhui Chaodong Cement Company Limited

In June 2006, Prosperity entered into an agreement to acquire a 40 per cent interest in Anhui Chaodong Cement Co. Limited (“ACC”). ACC is a public company listed and traded on the Shanghai Stock Exchange of the PRC under the listing code: 600318.

The first new clinker production line that was constructed as part of ACC's expansion plans, were completed within budget and on schedule. The clinker production line of 2 million tonnes / year designed saleable capacity was commissioned on 28 December 2008.

ACC has a current designed saleable capacity of 3.4 million tonnes / year with expansion plans to increase that to 6.9 million tonnes pa by the end of fiscal 2012.


D - Guangzhou K. Wah Nanfang Cement Company Limited (“Guangzhou Nanfang”)

In April 2008, Prosperity acquired a 40 per cent interest in Guangzhou Nanfang which owns a cement grinding facility with an annual designed saleable capacity of 0.84 million tonnes of cement in Guangzhou City.

Prosperity was brought in to improve Guangzhou Nanfang’s performance and has appointed a new management team to run it.

E - Yunnan Kungang & K. Wah Cement Construction Materials Co. Limited (“Anning”)

In May 2008, Prosperity acquired and invested in a 30 per cent interest in Anning, a cement and clinker production facility in Anning City, Yunnan Province.

Anning has an annual designed saleable capacity of 2.7 million tonnes of cement and clinker.

F - Baoshan Kungang & K. Wah Cement Construction Materials Co. Limited (“Baoshan”)

In June 2008, Prosperity acquired and invested in a 30 per cent interest in Baoshan, a cement and clinker production facility in Baoshan City, Yunnan Province.

Baoshan has an annual designed saleable capacity of 1.8 million tonnes of cement and clinker.

G – Project under development in Chongqing Municipal City

Prosperity is investing in a wholly-owned greenfield cement and cliker production facility in Chongqing Municipal City. Construction of a 2 million tonnes / year clinker production line commenced in May 2009 and is expected to be completed by the end of fiscal 2011.

Chongqing is located adjacent to Sichuan Province, where the devastating earthquake struck in May 2008. Approval of this greenfield project is part of the local government's efforts to reconstruct and redevelop the province.

H – Project under development in Denta City, Liaoning Province

Prosperity is investing in a 75 per cent interest in a greenfield cement and clinker project near Shenyang, the capital city of Liaoning Province in northern China. Construction of a 2 million tonnes / year clinker production line commenced in August 2008 and is expected to be commissioned by the end of fiscal 2010.

 
I – Project under development in Guiyang City, Guizhou Province

Prosperity is investing in a wholly-owned greenfield cement and clinker project in Guiyang City, the capital city of Guizhou Province. All the necessary governmental approvals have been obtained and the initial investment was made in April 2009. The first clinker production line of 2 million tonnes / year is expected to be completed by the end of fiscal 2011.

 
The Cement Manufacturing Process

The Residual Heat Electricity Generation System (RHE)

Iron Ore Business

The Group’s iron ore trading business has sourced, marketed and delivered iron ore to customers in the PRC since 1992. Management has developed strong relationships with the steel manufacturers that purchase most of its products.

In the financial year ended 31 March 2009 the Group’s iron ore trading business supplied 4.4 million tonnes of iron ore to customers in the PRC and generated segment results of $15.5 million.

Prosperity sources its iron ore supply from the traditional long distance suppliers in Brazil, Australia and South Africa as well as shorter distance suppliers in Thailand, Malaysia and Indonesia. (Read More)