Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » China to build overseas iron ore mines to ensure supply, boost pricing power

    China to build overseas iron ore mines to ensure supply, boost pricing power

    January 1, 2021
    Share
    Facebook Twitter LinkedIn WhatsApp
    Iron ore

    News wire — China aims to build one or two globally significant overseas iron ore mines by 2025 to boost supply of the steelmaking ingredient and strengthen its pricing power, the industry ministry said on Thursday.

    Equity output from stakes held by Chinese firms in overseas mines should account for more than 20% of iron ore imports by that year, according to a five-year plan for the steel sector published by the Ministry of Industry and Information Technology (MIIT).

    The plan, which is open for public feedback until Jan. 31, also called for increased supply of other steelmaking mineral resources such as manganese and chrome.

    China, the world’s biggest steel producer, currently relies on imports for around 80% of its iron ore but it is not known how much of that is from mines overseas in which it holds stakes.

    It has domestic iron ore mines with a much lower grade than in top producers like Brazil and Australia, and owns a stake in the Simandou mine in Guinea.

    “China will accelerate construction of large iron ore projects in West Africa and Western Australia,” the MIIT said, adding that cooperation would also be strengthened with resource-rich Russia, Kazakhstan, Mongolia, Cambodia and other neighboring countries

    China will also speed up mergers and acquisitions in the steel sector and form several “world-class” steel groups, said the ministry.

    The top five Chinese steelmakers are expected to account for 40% of China’s total steel output by 2025, while the top 10 will have a 60% share, up from 37% now.

    New steel production capacity in China will be strictly prohibited and new steel projects in coastal areas are “in principle” not allowed, the MIIT said.

    Electric arc furnaces – which mostly use scrap steel as feedstock – should account for 15-20% of crude steel output, it added.

    The MIIT, which on Thursday jointly issued a statement allowing imports of high-grade steel scrap from Jan. 1, is seeking to increase annual supply of domestic steel scrap resources to 300 million tonnes, the document said.

    (Reporting by Min Zhang and Tom Daly; Editing by Jason Neely and Jan Harvey)

    Related News

    Gold remains in a narrow trading band below $3,360/oz

    Gold rises as trade tensions persist ahead of key inflation data

    African mining ministers laud Alake’s leadership, resolve to adopt PARC

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    ExxonMobil Nigeria appoints new Chairman & Managing Director

    July 17, 2025

    NIMASA shut down product facility over non-compliance

    July 17, 2025

    AfDB & Partners launch a $263.8m infrastructure project

    July 17, 2025

    Energy sector drives CCUS growth, accounting for over 70% of projects by end-2024

    July 17, 2025

    Africa’s crude export landscape is shifting

    July 17, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.