Bloomberg reported that China has created a state-backed iron ore company to oversee everything from huge mine investments in West Africa to buying the steelmaking material from global suppliers. China Mineral Resources was established on 19 July 2022 with a registered capital of CNY 20-billion (USD 3 billion). The company’s business scope covers activities including mining, ore processing and trading agent. The new entity will house outbound investments such as the Simandou iron ore project in Guinea, seen by China’s leaders as the best route to ease the steel industry’s reliance on Australian ore. It will also ideally become the sole channel for buying imported iron ore from third parties, most of which comes from either Australia or Brazil.As per report “Former Chairperson of Aluminium Corporation of China Mr Yao Lin and Baowu’s Executive Vice-President Mr Guo Bin would lead the new group as Chairperson & General Manager.”The establishment of the company marks China’s biggest effort yet to tackle what its officials have long argued is the excessive pricing power wielded by miners including BHP and Rio Tinto. China spent about USD 180 billion on iron ore imports in 2021.Located in the southern Nzérékoré region of Guinea-Conakry, the Simandou mine holds the largest deposits of high-grade iron ore in the world of 2.2 billion tonnes with the potential of producing up to 150 million tonnes of iron-ore yearly. The development of Simandou iron ore in Guinea has repeatedly been delayed by legal disputes and government changes in the African nation. The reserve holds one of the world’s largest untapped reserves of iron ore and is divided into four blocks, with 1 and 2 controlled by the consortium backed by Chinese and Singaporean companies, while Rio Tinto and a joint venture between Chinalco & Baowu own blocks 3 and 4.
Bloomberg reported that China has created a state-backed iron ore company to oversee everything from huge mine investments in West Africa to buying the steelmaking material from global suppliers. China Mineral Resources was established on 19 July 2022 with a registered capital of CNY 20-billion (USD 3 billion). The company’s business scope covers activities including mining, ore processing and trading agent. The new entity will house outbound investments such as the Simandou iron ore project in Guinea, seen by China’s leaders as the best route to ease the steel industry’s reliance on Australian ore. It will also ideally become the sole channel for buying imported iron ore from third parties, most of which comes from either Australia or Brazil.As per report “Former Chairperson of Aluminium Corporation of China Mr Yao Lin and Baowu’s Executive Vice-President Mr Guo Bin would lead the new group as Chairperson & General Manager.”The establishment of the company marks China’s biggest effort yet to tackle what its officials have long argued is the excessive pricing power wielded by miners including BHP and Rio Tinto. China spent about USD 180 billion on iron ore imports in 2021.Located in the southern Nzérékoré region of Guinea-Conakry, the Simandou mine holds the largest deposits of high-grade iron ore in the world of 2.2 billion tonnes with the potential of producing up to 150 million tonnes of iron-ore yearly. The development of Simandou iron ore in Guinea has repeatedly been delayed by legal disputes and government changes in the African nation. The reserve holds one of the world’s largest untapped reserves of iron ore and is divided into four blocks, with 1 and 2 controlled by the consortium backed by Chinese and Singaporean companies, while Rio Tinto and a joint venture between Chinalco & Baowu own blocks 3 and 4.
