Pangang to rule Sichuan’s iron ore
Almost two years after receiving exploration rights to the Baima
iron ore mines in Panzhihua City, Sichuan-based Panzhihua Iron and Steel Group (Pangang) is nearing completion of the first stage of a project to exploit the Baima mines' 6 billion tons of
iron ore reserves.
The mines will initially produce 1.1 million tons of
iron ore per annum, increasing to 2.3 million tons per annum in 2007.
Not content to settle for only the Baima mines, Pangang is also trying to obtain the exploration rights to the Hongge mines in Miyi County of Panzhihua City. The Hongge mines are
China's largest vanadium-titanium magnetite
iron ore property.
Pangang's intent is to increase the company's own
iron ore reserves from its current 823 million tons to more than 1.6 billion tons by 2011. If the Hongge deal comes to fruition, Pangang will own 40% of the
iron ore lands in western Sichuan. The company currently holds 20.6% of the total
iron ore lands in the area.