Founding Background 　　　In November of 2010, People's Government of Hunan Province had built a strategic partnership and deep collaboration with China National Building Material Group Corporation, which is China central enterprise, directly under the State-owned Assets Supervision and Administration Commission. To speed up the process of new industrialization in Chenzhou city and promote local economic development，a strategic cooperation framework agreement on building up China's largest graphite industrial base has been signed by Mr. Xiang Lili , Mayor of Chenzhou Municipal Government and Mr. Cao Jiang-Lin, the director and president of CNBM. Ⅰ、Introduction of SOUTH GRAPHITE CO.,LTD 　　　 　　　In March of 2011, South Graphite Co., Ltd. is incorporated in Chenzhou City, Hunan Province, China, with registered capital of 1 billion yuan. South Graphite Co., Ltd., as a resource investment platform of CNBMI, is committed to actively promote the consolidation of graphite industrial resources and technological progress, and carry out a comprehensive consolidation and integration of graphite resources in the areas of Lutang Town and Heye , Taihe, Qinghe village (referred to as “Lu He Tai Qing mining area”) of Chenzhou city, to make the graphite business in Chenzhou area stronger、better and bigger and further lead healthy and sustainable development of the graphite industry. South graphite planned to have the capacity of 2.07 million tons annually，of which，11 coal mines can  produce 1.56 million tons/year, 9 graphite mines 510 thousand tons/year. The next three years, South Graphite will invest 3 billion to build up the fine and deep processing chain of graphite, make the radical improvement in  graphite industry of Chenzhou. Ⅱ、Production Base—LUHE TAI MINING AREA 　　　 The ore production base of South Graphite Co., Ltd. is located in Lu He Tai mining area in Chenzhou city, Hunan Province. It’s only 50 KM from Chenzhou downtown. The mining area stretches from north-south about 20KM, and with the width of 2.15 km on average from east-west. Its total area is around ​​45 square kilometers. In 1985, the State Geological Bureau proved the mining reserves of 34.07 million tons of graphite, which consisted of 72.5% of total proven reserves of amorphous graphite in China. 　　　The products in Luhe Tai mining area is high-grade mineral. Containing 80% fixed carbon on average, 92% on highest. It is well known for good quality.  　　　According to estimation recently, the mining reserves of 25.151 million tons of coal and 12.469 million tons of graphite in the scopes which have mineral rights. Outside the scopes which have mineral rights, detailed investigation has reached 8.87 million tons of coal reserves, 5.12 million tons of graphite reserves. And forecast that the mining reserves of 16.33 million tons of coal, 9.53 million tons of graphite in the deep mining area.  　　　 Ⅲ、Deep processing & R&D Base 　　　 　　　South Graphite Co., Ltd plans to invest 3 billion yuan in the next three years, building a national Graphite Industrial Park in Chenzhou City, which will cover 200 hectares, consisting of graphite processing, research and development, trade and logistics. 　　　Initial stage the industrial park covers an area of 100 mu and the factory building area is about 20,000m2. Currently the industrial park has carbon briquette production line, which the annual output of 300,000 tons； granular graphite production line, which the annual output of 150,000 tons；and graphite powder production line that annual output of 50,000 tons. 　　　 　　　 Ⅳ、Product Introduction 　　　 　　　Carbon briquette 　　　Carbon briquette, is made of shattered graphite ore, by dosing, grinding, extrusion, drying and a series industrial process, then being a globular structure which has a certain intensity. They are used as ingot protectants in steel industry. 　　　FC: 70%-90%; graphite ore has low sulphur and high-grade . 　　　Size: mainly 45×38×25mm、45×45×20mm、30×25×20mm、25×20×16mm ，also according to customers demand. 　　 　　　Granular graphite 　　　Granular graphite has a granular structure, appearing silver gray or black which is made of screened graphite ore. It is mainly used for steel carbon, refractory materials, high-temperature material, electrode paste, etc. 　　 FC: 60%-90%; graphite ore has low sulphur and high-grade . 　　　Grain size: mainly 0-3mm、0-6mm、0-15mm、1-5mm、2-5mm、1-6mm , also according to customers demand. 　　　 　　　Graphite powder 　　　Graphite powder is the powder form of processed graphite ore which appears gray black. It's mainly used for pencils, batteries, electrical carbon electrode, graphite bearing, casting material, refractory material, dyestuff and lubricating material. 　　　FC: 60%-90%, graphite ore has low sulphur and high-grade . 　　　Size: mainly 80mesh 、100 mesh 、150mesh 、200mesh 、325mesh, also according to customers demand. 　　　 　　　 Casting Graphite Specification: 　　　Classified by total of 8 levels as 60, 65, 70, 75, 78, 80, 83 and 85 according to the content of Fixed Carbon. The particle size of Graphite Powder is classified by 3 levels as 45, 75, 150um (the same as -325mesh, -200mesh and -100mesh ). Different specifications could be ordered by different demands. Usage: 　　　Casting Industry. When graphite was coated on the surface of the solid, the surface would form a smooth and hard film which has a good coating performance as Casting Remover. 　　　Brushing amorphous graphite powder on the surface of the wet-sand mould by banister brush, then the surface of the pouring stuff would be very smooth, and the air voids of the surface would be stuffed with graphite powder, the iron liquid would not be easily penetrating into sands which has a clean and tidy surface of the casting stuff instead of adhering sand casting. 　　　 　　　Oil drilling graphite 　　　Our oil drilling graphite powder has excellent lubrication, so can effectively reduce torque, wear and fatigue of the drilling, to extend the entire life cycle of the bit bearing. And also able to reduce the frictional resistance of the drill string, shorten the trip time; and prevent stuck, bit balling. The graphite powder can be strongly adsorbed in drilling tool and side wall, so as to improve the state of the friction between the friction pair, to play a role in reducing friction. Meanwhile, graphite powder adsorption in the side wall, the side wall microvoid can be closed, so can achieve double effects on reducing the filtration of drilling fluid and protecting reservoirs.