CNAM Subsidiary Forms Partnership with TRC Commodity Management

Armco & Metawise Ltd. (A&M), a subsidiary of China Armco Metals Inc. (CNAM), has established a partnership with TCG Commodity Management LLC to source high demand minerals as part of CNAM’s strategy to seek longer-term supply contracts for distribution in China.

TCG is an international market maker supplying raw materials to companies throughout Southeast Asia.

Following TCG's commitment to sell 800,000 metric tons of manganese to A&M, the two companies discussed partnership opportunities to secure additional commodities for distribution into China.

Under the framework of the deal, TCG has agreed to provide A&M preferential access to additional supplies of manganese as well as pig iron and iron ore from Brazil and coal from Colombia.

Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. states, "There is currently a supply-demand imbalance in China, with many core industrial minerals and metals. While this is largely attributable to China's strong growth, there are a number of other factors that contribute to this problem including market inefficiencies, differences in business culture and communication challenges. We believe these factors are very prominent in South America where a vast supply of these materials can be sourced into China.

According to Van Carter, chairman and CEO of TCG Commodity Management, LLC, "Our initial focus is on manganese and pig iron from Brazil and Coal from Colombia.”

“This business is dependent upon four factors,” Van Carter adds. First is the ability to bridge the differences in business culture, communication and regulation that exist between China and Brazil. Second is the ability within Brazil, to establish deep personal and professional relationships to secure access to mineral products. Third is the ability to secure favorable pricing and delivery terms, which is a direct function of our access to capital. Through our relationship with A&M, we now have direct access to end-users in China, which is the fourth essential element of a successful business. This is a win-win for both companies."