Company: CHNR
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001079973-25-000827
Chunk: 112

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 112
---
ably. The economic viability of a mining project may be adversely affected by many factors, including failure to identify sufficient ore reserves, reduced recovery rates, a rise in production costs as a result of inflation or other technical problems, and significant price fluctuations in the commodities markets. There is no guarantee that the Acquisition of the Zimbabwean lithium mine will close or be completed at the anticipated valuation and terms, or at all. In addition, the fact that the northern part of Moruogu Tong Mine is currently being explored under a Cooperation Agreement means that our share in any future profits from mineral extraction at the mine is effectively reduced, the details of which are still subject to negotiation. We currently do not generate revenues from our exploration and mining operations, and we will have to fund exploration expenses until we are able to generate sufficient revenue to pay them.
 During 2024, the world witnessed prolonged geopolitical conflicts, persistent high inflation and interest rate in many major economies and ongoing Sino-US friction, which led to disruptions to and notable fluctuations in the commodity market worldwide. The Chinese government stepped up policy efforts and maintained a series of targeted expansionary fiscal and monetary policies, along with supportive industrial policies, to bolster economic stability. In particular, a package of incremental policies was adopted in late September, which greatly boosted social confidence and speeded up recovery. Macroeconomic policies will largely impact economic cycles, growth rates, inflation and interest rates, and eventually result in changes in supply and demand dynamics and price fluctuations in the markets we intend to serve. Industrial policies will more directly impact specific industries and to some extent determine market access, market potential, intensity of competition and profitability. In the near future, we are likely to see further a series of highly supportive macroeconomic and industrial policies in various fields, but the extent and speed of economic recovery remains highly uncertain due to risks relating to the real estate sector, local government debt, escalating trade frictions, the ongoing geopolitical tensions and high interest rates of major economies, which might adversely affect the Chinese economy, our business operations and profitability. For further details on the impact of government policies, market uncertainties and high interest rates, please refer to “Item 3.D. KEY INFORMATION – Risk Factors – Risks Relating to Our Mine Exploration Activities in Inner Mongolia – Volatility in the market prices of metals may adversely affect the results of our operations,” and “Item 5.A. OPERATING AND FINANCIAL REVIEW AND PROSPECTS – Operating Results – Impact of Government Policies on the Company’s Operations.”
 Other than as disclosed above and