Jan 4 2011
China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that its wholly owned subsidiary CDII Trading, Inc. has entered into a contract with a privately held China-based trading company to supply iron ore from Bolivia.
As previously stated in our Form 8-K filed with the Securities and Exchange Commission on December 22, 2010, CDII Trading has been finalizing several supply contracts and sales agreements for iron ore delivery into China from Mexico and parts of South America with shipments expected to begin in the second quarter of fiscal 2011. CDII Trading has agreed to supply iron ore to its China-based buyer over a 12 month period under an agreement with a Bolivian mineral ore mining and exporting company upon acceptance of purchase orders by the parties and fulfilment of other commercial terms in the agreement including the successful completion of an initial test shipment. The monthly revenue under this agreement is expected to be approximately $4.5 million at the current market price for iron ore.
Commenting on this contract, Dr. James Wang, CEO and Chairman of China Direct Industries, Inc., stated, "This agreement to provide iron ore to China is a significant step forward for our trading operations in South America as we secure sales of iron ore under our long-term supply agreement with our Bolivian partner. We believe successful completion of shipments from Bolivia will lead to further success in this and other ore rich South American countries and Mexico. If we are able to complete delivery of iron ore to China under this agreement and our other supply agreements in Chile and Mexico, our international trading business has the potential to be a major driving force in the growth of our revenue and earnings for years to come."