ReTo Eco-Solutions (RETO) shares rose Wednesday after the Chinese environmental technology company unveiled an iron-tailings project in Hainan province.
The project is expected to generate about 280 million yuan ($43.7 million) in annual sales and 131 million yuan ($20.4 million) of gross profit, the company said.
ReTo recently traded at $1.24, up 6%, and has doubled over the past six months amid investor enthusiasm for clean-environment investments.
“ReTo will design, build and manage a facility in the Hainan Province, and this latest project will be responsible for the largest volume of iron tailings in Hainan,” it said.
Iron ore tailings are a form of solid waste produced during the beneficiation process of iron ore concentrate. Beneficiation is purifying the ore before smelting.
“The high volume of waste generated creates a significant environmental and economic cost, due to its massive land occupation and ecological damage,” ReTo said.
“Therefore, there is a greater need than ever for effective waste management systems and solutions.”
ReTo was selected on its “expertise in recycling the remaining ore and processing it into environmentally friendly building materials,” the company said. The project will have a 3-million-ton treatment capacity.
Meanwhile, Suni Harford, president of UBS Asset Management, told TheStreet.com last week that environmental, social, and governance, or ESG, is the next big investing trend.
"Everything we do today, we could do differently, more efficiently, more effectively from a planet perspective, and you're going to see a tremendous amount in that area,” she said.
Meanwhile, financial adviser Steve Bogner discussed ESG investing on TheStreet.com earlier this month.