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Iron Ore


theflasherman

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China to reject 33 pct iron ore price cut -source

Tue May 26, 2009 11:03pm EDT

 

SHANGHAI, May 27 (Reuters) - Chinese steelmakers, led by national champion Baosteel, will reject a 33 percent cut in iron ore prices agreed by mining company Rio Tinto (RIO.AX)(RIO.L) and Nippon Steel (5401.T), an industry source said on Wednesday.

 

The China Iron and Steel Association, the industry group that represents the country's major steel mills, will soon issue a statement on the rejection, the source said, adding it could be released as soon as Wednesday.

 

On Tuesday, Rio Tinto (RIO.AX) (RIO.L) said it had agreed to cut key iron ore prices to Japanese steelmakers by one-third in this year's first contract.

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China's reliance on iron ore imports seen to rise -paper

Mon Jun 22, 2009 8:29pm EDT

 

SHANGHAI, June 23 (Reuters) - China's reliance on imported iron ore is expected to rise to 70 percent this year from 50 percent previously, due to the availability of cheaper imports, the Shanghai Securities News reported on Tuesday, citing an unnamed executive from Sinosteel Corp Ltd.

 

Sinosteel, China's largest state-owned steel trading firm, has acted as a broker to import nearly 10 million tonnes of iron ore in the first five months of the year, almost triple the level of a year earlier, the executive told the paper.

 

"It was mainly because small and medium-sized steel mills in China have turned away from domestic ore to imported ore. As imported ore is more competitive in price, domestic steel mills' reliance on imports this year may rise to 70 percent from about 50 percent previously," said the executive.

 

China imported 53.46 million tonnes of iron ore in May, down slightly from a record 57 million tonnes in April, while its steel mills are still locked in price talks with iron ore suppliers including Rio Tinto (RIO.AX), BHP Billiton (BHP.AX) and Vale (VALE5.SA)(VALE.N). (Reporting by Rujun Shen and Jacqueline Wong; Editing by Ken Wills)

 

 

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UPDATE 1-Angang to clarify iron ore reports, shrs suspended

Thu Jun 25, 2009 1:31am EDT

 

* Angang halted after rising on news of China iron ore find

 

* China seen letting state-owned steel firms run mines -paper

 

* Asset will be gradually sold to listed companies -paper (Adds analyst comments and details)

 

HONG KONG, June 25 (Reuters) - Trading in shares of Chinese steelmaker, Angang Steel Co Ltd (0347.HK), was suspended on Thursday after the stock rose for a second straight day on news that China had found Asia's biggest iron ore deposits.

 

Angang (000898.SZ) was halted in Hong Kong and Shenzhen under exchange requests and it will issue a statement later to clarify recent media reports, a company spokesman told Reuters.

 

China is likely to let its state-owned steel firms, including the parents of Angang and Bengang Steel (000761.SZ), operate the newly found iron ore deposits in the northeastern province of Liaoning, Guangzhou Daily reported on Thursday.

 

The asset will be gradually sold to the listed companies, the newspaper quoted an analyst as saying.

 

Angang rose 3.22 percent in Hong Kong to HK$13.48 before the suspension in late morning. It rose 5.3 percent in Hong Kong and surged 7.4 percent in Shenzhen on Wednesday after China said it found the deposit, which has estimated reserves of at lest 3 billion tonnes. [iD:nPEK177215]

 

Both Angang and Bengang Steel, which rose to its 10 percent limit on Wednesday, were suspended on Thursday morning.

 

The discovery is positive as it should help to bring down Chinese steel producers' production cost and enhance their bargaining power in iron ore contract price negotiations, CIMB said in a research report on Thursday.

 

"Angang told us that it is keen to bid for ownership of the iron ore deposits," it said. But Morgan Stanley forecast Angang's share price will fall relative to the country index over the next 60 days.

 

"Yesterday's share performance, which appeared to benefit from a government announcement that a major iron-ore mine had been discovered in Liaoning province, appears vulnerable to a pull-back," it said in a research note on Thursday.

 

Morgan Stanley said its check with industry contacts revealed that the mine is 1 kilometre underground and the average grade is less than 30 percent ferrous content, which would make it a very high cost mine with little positive impact to China's steel industry or Angang. (Reporting by Joy Leung, Fion Li, Alison Leung and Parvathy Ullatil, Editing by Jacqueline Wong)

 

 

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It's a bit different to scrabbling it off the surface, but labour costs in China aren't any big deal are they?

 

AsiaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s biggest iron ore mine found in Benxi China

 

23 June 2009 @ 01:03 pm ET

 

 

Benxi - A huge iron ore resource with more than three billion tonsÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ of proven reserves has been found in China's Benxi, Benxi Municipal Government said on Tuesday, making it one of the biggest iron ore mines in Asia.

 

ItÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s reported that this iron was found during the second exploration of the city, which is based on the city's fifteen years of geological data. After it was reported to the China Geological Survey, it was perambulated by a team of geologists.

 

The team made 17 exploratory holes to explore the mine. Iron ore was found in 12 of the holes, covering an area of four kilometers long, three kilometers wide.

 

According to antecedent survey, a complete core of iron ore has been detected 1,100 to 1860 meters. High-grade resources can even be found underground 2015 meters. The bottom and border zones havenÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t been reached, said the team. The identified reserves available are more than three billion tons.

 

Meanwhile, the Dataigou mine has features of deep-buried depth, wide-spread ore body, steep obliquity and big scale of ore body. The iron deposit is a giant mixture of magnetite and hematite, with iron ore grade between 25% to 62%.

 

Shaoshi Xu, head of Minister of Land and Resources, paid a site visit there, urging the local government to do their best to make full use of Asia's largest iron ore mine for the nation and local as soon as possible.

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That's for sure!! China imported 400 or 500M tonnes iron ore in 2008, so imagine 10% of this at 40M tpa from an underground operation 1-2 km deep. I cannot begin to imagine the cost of getting an underground operation up at that rate from that depth. But if anyone can it would be the Chinese!!
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