Company Profile

Hongcheng Environmental Technology is a gold mine hazardous waste treatment company in Shandong province, the PRC, focusing on gold mine hazardous waste treatment and recycling and extracting therefrom resources with economic value for sale. According to the F&S Report, we are the second and third largest gold mine hazardous waste treatment company in Shandong province and in the PRC, respectively, with a market share of approximately 15% and 10% in terms of revenue in 2020, respectively. We are also ranked the first in gold mine hazardous waste treatment volume in Shandong province and the PRC, with actual treatment volume of approximately 1.08 million tonnes, accounting for approximately 26% and 18% of the total actual treatment volume in Shandong province and the PRC, respectively, in 2020.

We have two production facilities strategically located in Laizhou city, Shandong province, where the gold reserves ranked first among the county-level cities in the PRC. The total site area of our production facilities is approximately 228,683 sq.m. and they process the gold mine hazardous wastes collected from our upstream customers and recycle them into recycled products for sale to our downstream customers.

Business Model

Our upstream customers mainly engaged us to provide treatment services for cyanide tailings, which is a kind of gold mine hazardous waste resulted from smelting of gold. These cyanide tailings consist of cyanide, which is one of only a few chemical reagents that will dissolve gold in water. Cyanide is a toxic substance and can be lethal if ingested or inhaled in sufficient amounts. Gold mining companies employ stringent risk managements systems to prevent injury or damage from the use of cyanide. Cyanide in mining solutions is collected, either be recycled or disposed, after gold is removed. Due to the restrictions on technical expertise and cost consideration, gold smelting companies of gold mining companies engage gold mine hazardous waste treatment companies, like us, to collect the cyanide tailings from them and pay the corresponding treatment fee.

In our operation process, we are capable of detoxifying the gold mine hazardous wastes. Further, we are able to extract resources with economic value from gold mine hazardous wastes and pyrite concentrate and gold-bearing pyrite concentrate are the major recycled products extracted, which can be used for the production of sulphur and sulphuric acid that can be applied in various industrial process. We usually sell our recycled products to our downstream customers which are chemical manufacturing companies and trading companies of chemicals.