By the end of 2010, Chonggang will own the yearly steel production for 6.5mln tons and selling revenue for 35bln yuan, and iron ore is the major support.
By the end of 2010, Chonggang will own the yearly steel production for 6.5mln tons and selling revenue for 35bln yuan, and iron ore is the major support. Chonggang stated on September 24 that at present besides the 5 mines in Sichuan, Shaanxi and Chongqing making the domestic iron ore exploit reach 10mln tons and the self-sufficiency hit above 50%, and now the government is face to face negotiating with relevant Australia side on purchasing one iron mine with 3bln tons of deposit. If the project can succeed operating and it will become Chongqing's overseas largest iron ore buying project.
"For years, the domestic enterprises suffer from the higher price of importing iron ore." Insiders believed that Australia's iron ore price is one of the global wind vanes. The iron ore giant of this country---BHP Billiton, provides iron ore raw materials for China's large-scale steel groups. If Chongqing enterprises can succeed purchasing the Australia's iron ore project, and it not only may meet with iron ore demand from local state-owned companies, but also can help the domestic enterprises avoid the risk from rising iron ore price and carry out the iron ore transactions as well as increase new point for profit growth.
Previously, Chonggang also imported iron ore material from Australia. Top officials with Chonggang unveiled that the company needs to import 5mln tons of iron ore, and 4mln tons of them come from Australia and Brazil.