Project name: Kungang Flat Mill Project

Industries: Metallurgy

Location: Anning, Kunming, China

Project owner: KUNMING IRON AND STEEL (GROUP) CO., LTD.

Conditions: The location of the project, Anning, is about 30km far from Kunming city, with its convenient transportation (both railway and highway) and good infrastructures. The existing facilities for water supply, power supply and gas supply can meet the project demands.

Contents: To build a molten iron pre-treatment and a molten steel degassing facility, a slab continuous caster with a capacity of 625,000 tons of slab per year, a hot roll mill with a capacity of 795,000 tons of plates and strip coils, a cold roll mill with an annual capacity of 445,000 tons of cold rolled strip coils. (construction period is one and half a year)

Total investment: USD236.19 million

Preparations: The feasibility study and preliminary design has been carried out.

Profit forecasting: An annual profit of USD31.24 million, with a return rate of investment of 16.71%, and an internal income rate of 17.44%.

The way of investment: Could be negotiated.

Contact: Mr. Zhang Yongan

Tel: 0086+871 8606802 Fax: 0086+871 8606800

Add. Anning, Kunming, China 650302