- Baowu’s mills to benefit from lower production costs
- Partnership may be expanded to overseas projects too
Mysteel Global: Hainan Mining, a China-based company principally engaged in the mining, mineral processing, and sales of iron ores, signed a strategic partnership agreement with Baowu Resources on Monday, under which the former will supply 1 million tonnes (mnt) of iron ore to the latter for this year, according to Hainan Mining’s latest announcement.
It is the fourth year that the two companies have signed such supply deals of iron ore since 2022, Mysteel Global noted. Last year, Hainan Mining pledged to provide 1.3 mnt of iron ore, including 300,000 tonnes (t) of blended ore, to Baowu Resources, mainly supplying the feed material for steelworks and mining units affiliated with the China Baowu Steel Group.
The major source of iron ore supply is Hainan Mining’s Shilu mine located in South China’s Hainan province, with proven reserves of about 243 mnt, Mysteel Global learnt. The company’s core iron ore products include lump ores and concentrates.
“The cooperation with Hainan Ming will help our steel mills cut production costs,” said the senior vice president of Baosteel Resources, who also indicated the potential of expanding the cooperation between the two companies to some overseas projects.
Earlier this month, Baowu Resources, a mineral resources supply chain subsidiary of Baowu Steel, had also signed a memorandum of understanding with Australian mining giant Fortescue Metals Group to collaborate on a ‘green’ iron project.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
Leave a Reply