CI RESOURCES LIMITED - ASX: CII

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Description

CI Resources Limited (ASX: CII) has interests in a growing portfolio of phosphate assets in Australia and China. Phosphate is one of the primary ingredients of agricultural fertilisers, and is expected to undergo a significant increase in demand in the future, underpinned by the need for more intensive agricultural production techniques to support the world’s growing population, and provide better, healthier diets to people in developing countries. CI Resources was incorporated on 18 June 1987 (originally operating under the name Asset Backed Holdings Limited), and listed on the Australian Stock Exchange on 24 July 1987.

CI Resources’ key assets are:

* 44.73% interest (1,531,480 shares out of 3,423,507 as at 31 March 2010) in Phosphate Resources Limited, a public unlisted Australian company whose principal activity is mining, processing and sale of phosphate rock and phosphate dust from its 100%-owned phosphate mine on Christmas Island.
* 100% interest in Xifeng International Pte Ltd, a Singaporean company.
* 20% interest in Phosphate Resources (HuaLin) Pte Ltd, through its wholly owned subsidiary Xifeng International Pte Ltd, a Chinese company which holds a interests in three phosphate mines in China.

The Company intends to build its interest in Phosphate Resources Limited and will seek to increase its shareholding at a pace permitted under the Corporations Act. In addition, CI Resources continues to examine the international phosphate market for any new investment opportunities that may become available.

Phosphate Resources Ltd

CI Resources holds a 44.73% stake in Phosphate Resources Limited, an unlisted public company which carries out phosphate mining on Christmas Island - an Australian Territory, located off the northern coast of Western Australia.

Phosphate Resources owns 100% of a phosphate rock mine on Christmas Island, where it has mined and exported phosphate since 1990. Phosphate Resources usually exports approximately 700,000 tonnes per year of phosphate product to Australia, New Zealand, Malaysia, Thailand and Indonesia.

In addition to its phosphate business, Phosphate Resources has wholly owned subsidiaries involved in the fuel and earthmoving operations on Christmas Island. The company continues to be the largest employer on the Island.

Phosphate Resources has offices in Perth and Singapore, and employs over 100 people directly on Christmas Island, as well as contractors, making it the Island’s largest employer.

Phosphate Resources is currently seeking an additional 256 hectares of land for mining, which would likely extend phosphate export operations from Christmas Island from 5 years, to 10 to 12 years. The application for these new mining leases was rejected by the former Minister for the Environment. The Company successfully appealed in the Federal Court against the former minister’s decision. The application is now before the Minister for the Environment for a determination.

Phosphate Resources is a high quality asset that is expected to significantly contribute to CI Resources growth, taking advantage of the expected strong growth in demand in the international phosphate market.

Mine For

phosphate

Location of operation(s)

Australia, China

Address

13 Mt Eden Lane
OAKFORD, WA, AUSTRALIA

Phone

+61 8 9485 7222

Email

Website

http://www.ciresources.com.au/

Last Updated

28/03/2011