Western Region Gold subsidiary halts ferroalloy production for maintenance

Xinjiang Hongfa Ferroalloy Co. Ltd., a wholly-owned subsidiary of Western Region Gold, will halt production at its four 12500KVA semi-enclosed submerged arc furnaces. The decision stems from the prolonged operation of the furnaces, leading to structural oxidation and reduced efficiency. The company plans to consume existing raw material inventory before initiating the shutdown for maintenance, which is expected to last until the end of 2025. Future production will be decided based on the actual maintenance outcome.

In 2024, Hongfa Ferroalloy reported a revenue of CNY 54,627.81 million, accounting for 7.80% of Western Region Gold's total revenue, and a net loss of CNY 3,146.17 million. For the first half of 2025, Hongfa Ferroalloy's unaudited revenue was CNY 12,707.10 million (2.53% of the parent company's total revenue) with a net loss of CNY 3,820.91 million. The exact impact on Western Region Gold cannot be accurately estimated as the resumption date for Hongfa Ferroalloy remains uncertain. The company assured that other operations remain normal and the maintenance itself will not affect its core business.