China, the world’s largest iron ore consumer and steel producer, has taken one step closer to achieve its goal of raising self-sufficiency in steelmaking raw materials by setting up China Mineral Resources Group Ltd.
The new company held its official inaugural meeting in Beijing on July 25. It is based in North China’s Hebei province with a registered capital of Yuan 20 billion ($3 billion).
The company’s business scope may include the procurement of steelmaking ingredients as well as the management of mineral resources mining, Mysteel Global learned from a market source close to this company.
The establishment of China Mineral Resources Group is a major measure taken by China to safeguard the supply of important mineral resources by taking full advantage of both domestic and overseas markets, which will contribute to the stability and high-quality development of the industry chain, as reported.
As a wholly state-owned company directly managed by the central government, China Mineral Resources Group will adhere to open collaboration, win-win cooperation, and market-oriented and law-based operations, to create a mineral resources enterprise with global competitiveness and influence.
In recent years, over 80% of total iron ores used in China’s iron and steel production were imported from overseas markets, forcing Chinese government to make great efforts to watch and control the price speculation of iron ore, Mysteel Global learned.
China has long struggled to ensure stable supplies of steelmaking raw materials for the healthy development of the domestic steel industry – a goal that continues to challenge both the central government and the industry.
In this scenario, China Iron and Steel Association (CISA) has put forward the Cornerstone Plan early this year, which calls for the change in China’s iron source form by reducing the external dependence of iron ore resources.
Therefore, the establishment of China Mineral Resources Group Ltd is also in line with the country’s goals of enhancing its position in global iron ore trade and price negotiations, Mysteel Global understands.
Written by Anthea Shi, shiui@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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