Our mining operations achieved significant growth in 2010. With our newly acquired Xinyuan lead-zinc mine and Aolunhua copper-molybdenum mine starting to contribute to our financial results this year, we expect the growth of our mining business to continue to accelerate in 2011 and beyond. We continue to implement our strategy of becoming a pure-play resources company and are currently considering options to divest of our remaining telecommunications business. We expect to formalize and announce our final decision in June 2011.
Qiao Xing Universal Resources today announced that its subsidiary has placed the winning bid and completed the acquisition of a 34.53% equity interest in Chifeng Aolunhua Mining Co. for US$28 million from a local Chinese government agency. The consideration for the bid will be paid in two cash installments within six months. With the cash in hand, cash flow to be generated from our three in-operation mining projects as well as some bank loans (when necessary), we believe that we will be able to pay the purchase price as scheduled. Given our financial condition and reputation in China, we believe that bank loans will be available to us if we need them.
"As the Chinese government is preparing to classify molybdenum as a national mining resource, which could limit its mining starting this year, we are increasingly optimistic about the business case for supplying molybdenum products and the long-term price trend. We believe that this additional copper-molybdenum mine, with molybdenum reserves and milled molybdenum ore production capacity of four and ten times, respectively, that of our existing Haozhou molybdenum mine, will be an excellent fit with our strategy of increasing our business scale and strengthening our resources portfolio. We are now a major investor in Aolunhua. We further intend to acquire a controlling equity interest in Aolunhua at an appropriate price and time in the future. XING is now poised to be one of the leading players in the molybdenum mining business in China. Following two important acquisitions, we think we have reached our initial goal of becoming a company with meaningful size in the resources industry. However, we will not cease our efforts to explore additional acquisition opportunities in the future to enhance our foothold in China's resources industry."