China Direct Industries Inc a US based company that sources, produces and distributes industrial products in China and the Americas in two core business segments announced that it has completed the sale of its 51% stake in Shanxi Pan Asia Magnesium Company for USD 3.05 million in cash to Bloomgain Investment Company Ltd a privately held British Virgin Island company.

The sale of Pan Asia is part of management overall plan to focus its Magnesium segment operations on the management of facilities previously owned or controlled by Yuweii Huang, a member of China Direct Industries’ board of directors and its executive vice president magnesium. Management intends to use the proceeds from this sale for general working capital as well as to expand its magnesium operations in China and its US based commodities trading operations as it continues to ship iron ore to China from Mexico and begins shipping from South America.

Dr James Wang Chairman & CEO of China Direct Industries Inc stated that “We are pleased to have concluded this sale as we move forward with the expansion of our Magnesium segment in partnership with Mr Huang. This infusion of capital will provide us with further financial flexibility as we strengthen our magnesium business and build our ore distribution capabilities in Mexico and South America in the coming quarters. We look forward to putting this money to work as we position our company for growth in fiscal 2012 and beyond.”