September 06, 2008

Chongqing discovers 100 million tonnes iron ore reserves

Chongqing Municipal Land Resources & the House Administration Bureau announced on December 26th 2007 that Chongqing had discovered the largest iron ore deposit of 100 million tonnes in Wushan.

As per reports, the area of the deposit is 28.75 kilometer and the iron content in an average reaches 42%, exceeding China’s national average level. The perspective reserve is estimated at 300 million tonnes and a conservative estimate can be refined 30 years.

Chonggang plans to set up a processing plant in Wushan on November 28th 2007. Executives from Chonggang disclosed that it will invest CNY 1.4 billion to set up iron ore mining base together with several other enterprises. At present, the iron ore demand of Chonggang is 5 million tonnes per year, when its new plant in Changshou be put into production in 2010, the demand will increase to 9 million to 10 million tonnes per year. At present, nearly 60% iron ore of Chonggang is imported from abroad, after the iron ore plant in Wushan be completed, Chonggang can save nearly CNY 2 billion per year.