Reuters reported that Anglo-Russian miner Aricom Plc has sold the first 5,000 tonnes of iron ore from its Kuranakh deposit in the Russian Far East as it seeks to become a supplier of raw materials to China's booming steel industry.

Mr Jay Hambro CEO of Aricom said that Aricomis also considering partners for the USD 1.5 billion development of other iron ore deposits near the Chinese border, which are due to launch in 2010. He said that "What we have done is proven our ability to contract with another party, proven the rail logistics."

He added that "We will be going into full crushing and screening operations in the third quarter and we will have a product to sell on a regular basis."

Mr Hambro said Aricom would be able to deliver concentrate from Kuranakh by rail to the Chinese border at a freight rate of USD 13.44 per tonne or about a quarter of the cost from Australia. He said that sales of ilmenite, the ore from which titanium sponge or dioxide is made will begin early next year.