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Natural
resources in the form of salt is one of the areas of business in
which FirstLink has made a significant foray. The Company has a
direct 27.82% interest in Qinghai Province Salt Industry Limited
(QS) through its wholly-owned subsidiary, Amtrosden Assets Limited,
making QS an associated company of FirstLink.
QS
is engage in the manufacturing and distribution of salts in China
and has been operating for about 50 years in the business of mining,
processing and distributing edible and industrial salts in China.
The
most valuable assets of QS are the two salt lakes, namely Chaka
Lake (95sq km) and Keke Lake (113sq km), which are located some
3,000 metres above sea level on the Qinghai-Tibet Plateau where
virtually no man-made pollution is found. The products of QS are
the only salt products in China having been granted the "Greenfood"
accreditation by China Greenfood Development Centre, signifying
the products as pollution free and high quality. QS
holds 30 years' mining rights in these two high quality salt lakes
which have an estimated total salt reserve of 1.5 billion tons.
The production capacity of QS is expected to be upgraded from the
existing 1.9 million tons to 4 million tons per year.
Chaka
Lake and Keke Lake have railway connection to the PRC national railway
system. Finished goods are loaded onto trains in loading
stations located within the processing plants adjacent to the salt
lakes and shipped directly to the distribution centres where the
goods are then delivered to customers through the extensive PRC
national railway network. The availability of an abundance of land
bank around the salt lakes is an attraction for companies with high
industrial salt consumption. QS has arranged alkali-chloride industries
to set up plants in the vicinity of the lakes with the support of
the local state government.
Besides
the distribution of edible and industrial salt, QS works closely
with some renowned research institutions such as the Hong Kong University
of Science and Technology (HKUST), the Chinese Academy of Sciences
and Qinghua University on product development and manufacturing
processes of salt and salt-based products from raw salt extracted
from the salt lakes.
Having
a strong foothold in the China market through QS, FirstLink is well-positioned
to take advantage of the geographical convenience of Singapore as
a trading hub to exploit the overseas market.
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