Chongqing Steel to achieve iron ore self-supply

By 2012, Chongqing Steel will have produced enough iron ore to cover its own demand, currently at five million tons per year, four million tons of which come from Australia and Brazil, exposing itself to the swings of iron ore price in the international markets. Among domestic mines Chongqing has determined to explore are Taihe vanadium- and titanium-containing magnetite in Xichang, Xiaojinhe magnetite in Shaanxi, Taohua Iron Ore Mine in Wushan, Zhuantang Iron Ore Mine in Qijiang and Jielong Iron Ore Mine in Banan. These mines once launched would meet more than half of the mill's total demand. Besides, the group also reached a framework agreement last year to invest $258 million in Asian Steel Holdings, a controlling shareholder of an Australian iron ore mine that has a magnetite reserve of up to 1.78 billion tons and is scheduled to produce 10 million tons per year of high-grade concentrates after 2012.