Chinalco Gongyi to Ensure Supply of up to 250K tons of Bauxite per Year

GONGYI, China, Jan. 9 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS) ('Gengsheng' or 'the Company'), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has formed a supply partnership for bauxite with Aluminum Corporation of China's Gongyi Division ('Chinalco Gongyi'), which produces bauxite from a mine it owns in Gongyi City of Henan Province.

The bauxite mine has an estimated reserve of 12 million tons, with an average alumina grade of over 70%, and an estimated life of 25 to 30 years. Under the partnership, Chinalco Gongyi will ensure the annual supply of 150,000 to 250,000 tons of bauxite, with an average alumina grade of no less than 75%, to Gengsheng as raw materials for refractory and fracture proppant products. Gengsheng will pay a slightly-below-market price for Chinalco Gongyi's bauxite.

'This long-term strategic supply partnership is meant to ensure the stability of our raw material source for the foreseeable future,' said Mr. Shunqing Zhang, Chairman and CEO of the Company. 'Chinalco's bauxite mine is about 15 kilometers (9.3 miles) from our manufacturing facilities in Gongyi and we are very pleased to secure a favorable price for their products. In light of the tumultuous commodity prices over last year, we see this partnership as a strong positive for the long-term sustainability and growth of Gengsheng.'

Aluminum Corporation of China (NYSE: ACH) is the world's second largest alumina producer, with assets of RMB 377.7 billion ($55 billion) as of June 2008, according to its Website. It is the parent company of Chinalco Gongyi.

About China Gengsheng Minerals, Inc.

China Gengsheng Minerals, Inc. ('Gengsheng') develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy.