Li Chuangxin, deputy secretary-general of the China Iron and Steel Association (CISA), has stated that, as the largest steel producer and iron ore consumer in the world, China plans to invest significant funds in developing overseas iron ore resources in order to reduce its dependence on the big three iron ore mining giants (Vale, BHP Billiton and Rio Tinto), according to Chinese media sources.
China's iron ore imports from Brazil, Australia and India in 2010 met 62.3 percent of its total demand. The figure indicates the heavy dependence of China's steel producers on imported iron ore.
Mr. Li stated that the main purpose of the investment plan is to break the monopoly of the three iron ore mining giants. He said that China's goal is to reduce its dependence on iron ore imports from 62.3 percent to below 50 percent.