Tin Industry Co., Ltd. decided to establish a copper business exclusively for branch construction and operation companies. The company issued an announcement on the evening of the 30th that, in order to further adjust the industrial structure, it gradually got rid of the unfavorable situation that the tin industry of the company was relatively small compared to other non-ferrous metal industries, and the future growth was limited. The formation of the tin industry and the development of various industries were gradually formed. As for the target, the company decided to establish a branch company of Yunnan Tin Industry Co., Ltd. to build a smelting project with an annual output of 100,000 tons of copper.

Tin Industry Co., Ltd. is the world's largest tin producer and owns about 50% of the country's tin resources. Because of the large amount of lead and copper deposits associated with its own tin mines, the cost has a natural advantage. Therefore, on the basis of consolidating the main tin industry, the company is making better use of its own resource advantages through the development of lead and copper business. The company currently has 570,000 tons of copper reserves and an annual output of 1-2 million tons of copper concentrates.

The company’s 100,000 t lead smelting project was formally put into operation in 2011. If the 100,000 t copper project is put into production again, the company will complete the transition to a tin, copper, and lead integrated mining company.

Northeast Securities said that after the 100,000 t copper smelting project is put into production, the company’s copper business profitability will increase. As the source of profit for copper is mainly self-produced copper concentrate, it still maintains a gross profit margin of over 30%, while the by-products will improve the overall smelting profitability.

Since the developed countries, mainly US-based, implemented loose monetary policies after the financial crisis, metal prices generally rose sharply. In 2010 alone, international tin prices rose by 49.87%, copper and lead rose by 45.68% and 24.43% respectively. Benefiting from the high sales price of the company's products, the company achieved operating income of RMB 3.196 billion in the first quarter of 2011, an increase of 57.07% year-on-year; and a net profit of RMB 185 million, a year-on-year increase of 157.87%. The unit price of tin products rose by 34.84% year-on-year, and the unit price of copper products rose by 22.43% year-on-year.

On the 30th, Tin Industry closed at 28.20 yuan, down 1.84%.