China Kingstone (01380) has announced plans to expand the production capacity of its Zhangjiaba mine, according to a company filing.
In its interim report for the six months ended June 30, 2026, the company disclosed that limestone mining at the Zhangjiaba mine 鈥?a cream-colored marble deposit located in Zhenjiang Village, Xiangshui Township, Jiangyou City, Sichuan Province 鈥?had been temporarily suspended pending renewal of its mining license.
Following the successful renewal of the Zhangjiaba mine's mining license on August 10, 2026, the group has been actively resuming mining operations and advancing its strategic plan to expand the mine's production capacity.
After an on-site inspection by the Jiangyou City Emergency Management Bureau of Sichuan Province, approval was granted on September 9, 2026 for the orderly resumption of production at designated operational areas within the mine's currently approved elevation range.
Under relevant regulatory requirements, the group is permitted to conduct mining operations at the approved elevation, but may not extend mining operations to deeper areas of the Zhangjiaba mine until the required safety facilities are constructed and approved, and a corresponding new safety production license is obtained.
As mining operations at the currently approved elevation are about to reach the limits stipulated by the existing safety facility design, further mining operations at the Zhangjiaba mine remain suspended pending the completion of necessary safety facility upgrades and regulatory approvals.
To facilitate the continued development of resources in deeper areas of the Zhangjiaba mine, the group is actively advancing a capacity expansion plan. The group currently holds a valid safety production license for the Zhangjiaba mine, valid until March 26, 2027, with an approved capacity of 750,000 tonnes per year.
In line with the group's long-term development strategy, the group has resolved to undertake an expansion project to increase the annual capacity of the Zhangjiaba mine from 750,000 tonnes to 3.5 million tonnes, subject to obtaining relevant regulatory approvals.
As this strategic expansion involves a substantial increase in production capacity and the extension of mining operations to deeper elevations, it constitutes a major upgrade to the mine's safety facilities and operational scale. Accordingly, the group is proceeding with applications for an updated safety facility design approval and a corresponding new safety production license for the proposed capacity expansion.
To facilitate this expansion, the group has commenced relevant preliminary preparations with the Sichuan Provincial Emergency Management Department, and the relevant application was submitted on October 30, 2026. The group currently expects to obtain approval for the updated safety facility design by the end of January 2027.
Upon obtaining such design approval, the group will commence construction of the 3.5 million tonne expansion project, with an expected construction period of approximately 3 to 4 months. The group aims to complete the relevant acceptance procedures and obtain a new safety production license for the expanded capacity by June 2027, subject to relevant regulatory approval procedures and construction progress.
During this period, while the application, construction and licensing procedures are underway, the group will manage the operational transition in an orderly manner. The board considers this transition period to be a necessary and prudent step that will help the group achieve its long-term strategic goal of further developing the Zhangjiaba mine.
The board believes that the implementation of the capacity expansion plan will benefit the long-term development of the Zhangjiaba mine. Upon completion of the relevant regulatory procedures and construction works, the expanded production scale is expected to enhance the group's operational capabilities, economies of scale and overall market competitiveness, thereby creating sustainable long-term value for all shareholders.