Eastern China-based Laiwu Iron and Steel Group, has signed a long-term iron ore supply agreement with Mauritanian mining company Societe Nationale Industrielle et Miniere (SNIM).
The agreement will cover the supply of approximately one milllion mt of iron ore per year to Laiwu Steel from Africa from next year onwards. However, the duration of the contract has not been clarified.
Mauritania-based SNIM is the second largest iron ore miner in Africa with an annual iron ore production capacity of 12 million mt. The company mainly sells its iron ore to Europe.
Laiwu Steel, which imports 85 percent of the iron ore it consumes, aims to produce 11 million metric tons of crude steel in 2007.
This is the first long-term iron ore supply agreement between a Chinese company and an African miner.