Perth, Oct 19, 2007 AEST (ABN Newswire) - The Board of CI Resources Ltd (ASX: CII) has today confirmed it will retain its investment in the Guizhou Tiangfeng Chem-Phos Company Ltd.
In its 2006 Annual Report, CI Resources reported that the Company had acquired a 51% interest in Xi Feng International Pty Ltd, and in turn Xi Feng had acquired a 32% interest in Guizhou Chitianhua Group Tianfeng Chemical Industrial Co Ltd - a company registered and operating in the Peoples Republic of China. The name of the Chinese company reported in the 2006 Annual Report was incorrect - the correct name is Guizhou Tiangfeng Chem-Phos Company Ltd.
The Annual Report also informed shareholders that the Directors had resolved to divest CI Resources' interest in this investment in light of the loss that had been incurred to 31 December 2006.
However, Guizhou Tiangfeng's financial statements to 30 June 2007 reported that the company had made a profit, and based on this result, the Board of CI Resources has determined to retain its investment.
CI Resources now intends to examine ways in which we can reduce the overheads of maintaining this investment and assess opportunities that can lead to improved returns.
In addition to its investments in Xi Feng International Pty Ltd and Guizhou Tiangfeng Chem-Phos Company Ltd, CI Resources also holds a 39.06% interest in Australian company, Phosphate Resources Ltd. CI Resources' strategy is to build a portfolio of quality assets that will position the Company to take advantage of the changing dynamic in global fertiliser supply, characterised by increasing global demand and diminishing reserves.
Contact
Ms Janelle Burns
Joint Company Secretary
Tel: +61-417-963-323
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