It is reported that construction work of Wushan Taohua iron ore project has started at Wushan in Chongqing. The Taohua project is a joint venture of Chinese steel mill Chongqing Iron and Steel and the local government.

As per report Wushan Taohua iron ore mine covers an area of 28.75 square kilometers with total explored reserves of around 87 million tonnes. The reserves mainly consist of hematite with an average grade of 44.72% to 56.8% Fe.

Commissioning of the first phase of the project is planned to start in 2012 with an estimated investment of CNY 800 million. The project also involves the building of the second largest steel production base in southwestern China. By 2015, a total of CNY 1.1 billion will be invested in the project.

After completion, the project is expected to have an annual production capacity of 1.2 million tonnes of raw ore, 500,000 tonnes of ore concentrate and 100,000 tonnes of cast iron, with an overall annual production value of CNY 1.5 billion.

(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!