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Steel companies seek overseas iron ore
Last Updated(Beijing Time):2007-08-13 16:37

More and more domestic iron and steel enterprises are seeking overseas iron ore resources, according to Capital Iron and Steel Group chairman Zhu Jimin, reported today.

Zhu said domestic steel companies including Capital Iron and Steel Group and Baosteel have plans to exploit iron mines in Africa, Australia, and Brazil.

He also mentioned 45 to 50 percent of China's iron ore is mined domestically. As for Capital Iron and Steel, domestic iron ore mines supply roughly 30 percent of its iron ore and the remaining 70 percent is imported.

China is not lacking in iron ore resources, but excessive growth in global steel production capacities has resulted in poor mining capabilities and made it difficult for domestic mines to meet demand, Zhu said.

The short supply of iron ores will be relieved in 2 to 3 years, according to Zhu.

Zhu said that Capital Iron and Steel Group is expected to reach agreements with overseas mining companies for exploitation rights in overseas mines in the first quarter next year.

The company has bid for iron ore projects in Africa and will mine in Australia through market exchange.

Domestic companies won't transport their overseas iron ore back to China, and they will sell the iron ore locally for money, Zhu said.

Statistics from the China General Administration for Customs show that the total iron ore import last month was 26.9 million tons, down 6.37 percent from June last year, and 2.61 percent from the previous month. 
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