About Minmetals Resources Limited

Minmetals Resources Limited ("Minmetals Resources" or the "Company") is listed on the main board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), (stock code 1208).

The Company together with its subsidiaries (collectively the "Group") principally engaged in the trading of non-ferrous metals and manufacturing and distribution of aluminum and copper products.

The Company's ultimate controlling shareholder is China Minmetals Corporation ("China Minmetals"). China Minmetals, a State-owned enterprise, is a large conglomerate with a history of trading in metals and minerals for more than 50 years. It is one of China's major suppliers of non-ferrous metals and products, the largest iron and steel trader in China and the largest supplier in China of raw materials for the steel making industry. It also engaged in finance, real estate, shipping, domestic trade and investment.

History of the Company

Minmetals Resources (previously known as Oriental Metals (Holdings) Company Limited) was incorporated in Hong Kong on 29 July 1988 and its shares have been listed on the main board of the Stock Exchange since 15 December 1994. The Group has been engaged in the trading of non-ferrous metals, ores and semi-finished products since its incorporation.

The Company completed its debts and capital of the restructuring proposal on 12 January 2004, China Minmetals became the ultimate controlling shareholder of the Company. Following completion of the restructuring, China Minmetals has reviewed the business and operations of the Group with a view to rationalising and improving its performance.

On 6 October 2005, the Group completed acquisition of the alumina and aluminium-related businesses of China Minmetals (the "Acquisition"). Alumina and aluminium trading business has then become the core strategic focus of the Group. The Group will further consolidate the aluminium production chain and diversify into other non-ferrous metals and resources businesses, thereby developing itself as a platform to overseas market for China Minmetals' non-ferrous business.

The Acquisition provides an opportunity for the Group to widen its alumina and aluminium businesses by increasing its scale and become the listed flagship company for China Minmetals' alumina and aluminium related businesses. For further information about the Acquisition, please refer to the circular of the Company dated 30 June 2005.

To reflect the Group's market position and strategic plan upon assets injection as well as the close connection with China Minmetals, the Company has changed to its name Minmetals Resources Limited since 4 August 2005.

Mission

Keeping our focus on core operations, the Group is committed to maintaining its competitive edge and expanding market share to further consolidate its dominance in the PRC import alumina market.

Strategy

To build on our competitive strengths and to pursue opportunities to enhance the results of our operations through achieving further vertical integration, constantly expanding existing businesses and diversifying into other non-ferrous metals operations.

Business Operations of the Group

The Group's business consists of three main business segments:

Trading Business

In 2007, trading business accounted for approximately 51% of the Group's total turnover. Majority of which was from alumina trading whilst a small percentage was from the trading of other non-ferrous metals.

Minmetals Aluminium Company Limited ("Minmetals Aluminium"), a wholly-owned subsidiary of the Company, primarily engaged in sourcing alumina from international markets and supplying of such alumina to aluminium smelters in China. Minmetals Aluminium is the largest supplier of overseas sourced alumina to China market and it has established strong business relationship with more than half of the aluminium smelters in China.

Minmetals Aluminium also has well established long-standing relationship with the world's largest refiners of alumina which provide the Group with a stable supply of alumina. The Group sources alumina from Australia, Jamaica, India, the United Stated of America, Brazil, Venezuela and Greece.

The Group has secured a long term alumina sourcing arrangement with Alcoa for 400,000 tonnes per annum up to 2027 under the Alcoa contract. The contract has been structured as an investment in Alcoa's production assets with a long term secured supply of alumina at an on-going annual price similar to that which would be enjoyed by the owner of a bauxite mine and alumina refinery. Through the Alcoa contract, the Group has locked in low cost alumina supplies and a degree of vertical integration, enabling it to enjoy similar economic benefits as an owner of a bauxite mine and alumina refinery.

Aluminium Fabrication Business

North China Aluminium Company Limited ("North China Aluminium")

North China Aluminium is a 67.31% owned subsidiary of the Group and engaged in the production and sale of aluminium foil plate, strip and aluminium extrusions in China. Its products are supplied to the packaging, transportation, home appliances and publishing sectors.

North China Aluminium has a production capacity of approximately 80,000 tonnes of aluminium foils and aluminium plates and strips per annum.

Other Industrial Operations and Port Logistics Services

This business segment consist of:

Yingkou Orienmet Plica Tube Company Limited ("Yingkou Orienmet")

Yingkou Orienmet is a Sino-foreign equity joint venture owned as to 51% by the Group, engaging in the production and sales of flexible metal conduits, which are mainly used in construction, infrastructure, machinery engineering, power network as well as anti-explosion and increased safety wiring system.

Yingkou Orienmet has a production capacity of approximately of 2 million metres of flexible metal conduits per annum.

Minmetals Non-ferrous Lianyungang Company Limited ("Minmetals Lianyungang")

Minmetals Lianyungang is a 90% owned subsidiary of the Group, engaging in port logistic services such as obtaining customs clearance, unloading and packing of alumina and receiving and delivery of alumina for the alumina/aluminium trading business of the Group at the port of Lianyungang. It also conducts spot trading of alumina and information collection at the port of Lianyungang. Other than Lianyungang, the Group also has the storage facilities at other major China coastal ports. This can provide more flexible and convenient logistic services to meet the needs of its customers.

Sino Nickel Pty Ltd ("Sino Nickel")

Sino Nickel is an Australian company owned as to 40% by the Group. It trades in nickel concentrate primarily from the Kimberly region in Western Australia to be exported to China.

Changzhou Jinyuan Copper Company Limited ("Changzhou Jinyuan")

Changzhou Jinyuan is a Sino-foreign equity joint venture owned as to 36% by the Group. Changzhou Jinyuan is engaged in the production of copper rods with both domestic sale in China and export sale. Its production capacity is 30 tonnes of copper wires per hour.

Qingdao M.C. Packaging Limited ("Qingdao Packaging")

Qingdao Packaging is a Sino-foreign equity joint venture owned as to 20% by the Group and is engaged in the manufacturing and sale of various kind of aluminium cans in China. Its production capacity is about 380 million aluminium cans per annum.

Yantai Penghui Copper Industry Company Limited ("Yantai Penghui")

Yantai Penghui is a Sino-foreign equity joint venture owned as to 42% by the Group and is engaged in the production and sales of copper cathodes in China and aboard. Its production capacity is approximately 39,000 tonnes of blister copper and 100,000 tonnes of copper cathodes per annum.