Ma Steel plans to issue CNY 1 billion medium-term note on August 24. In the statement, Ma Steel said of 70% iron ore consumed by the company is imported, So the company will spend CNY 400 million from issuance to expand Zhangzhuang iron ore project for facility construction and later operation funding.

According to the statement, steel capacity of the company is around 16 million tonnes, the company imported 15.95 million tonnes of iron ore in 2011 at an average price of CNY 1,182 per tonne, iron ore import in the first three months of this year was 2.6 million tonnes at an average price of CNY 1,177 per tonne.

Iron ore import will rise with expansion of the company, and high price of it and high volatility of coking coal challenges the company in cutting down raw material cost.

Zhangzhuang iron ore mine, a new project located in Northern part of Hupqiu iron ore deposit has 225 million tonnes of iron ore reserve at grade of 33.27% of Fe content. The project with investment of CNY 2422.78 million is designed to mine and process 5 million tonnes a year and to serve 33 years after commercial production at the end of 2015.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)