Shandong Steel signs four cooperation agreements in Xinjiang

Friday, 30 July 2010 13:54:18 (GMT+2)

At the recent 6th Kashgar Central & South Asia Commodity Fair held in Kashgar in China's Xinjiang Uyghur Autonomous Region, Jinan-based Chinese steel producer Shandong Iron and Steel Group inked a total of four cooperation agreements with the Administrative Office of Kashgar and with three companies in the region, with the aggregate investment reaching RMB 3.95 billion ($583 million).

  Shandong Steel Group has signed an agreement with the Administrative Office of Kashgar to develop a 1 million mt steelmaking program, with a total investment of RMB 3 billion ($443 million).

  Shandong Jinling Mining Co., a subsidiary of Shandong Steel Group, has agreed to acquire a 100 percent stake in Kashimir County, Kashgar-based Jingang Mining Inc. Shandong Jinling Mining will invest RMB 300 million ($44.31 million) to develop iron ore mining projects at Qiaopuka mine, aiming to reach an annual production capacity of 1.5 million mt of iron ore and 600,000 mt of iron ore concentrate within two years.

  Shandong Jinling Mining has also signed an agreement with the local government of Shule County, located to the south of Kashgar, to establish a 1.2 million mt grate-kiln pellet facility. The total planned investment is RMB 350 million ($51.66 million).

  Shandong Steel Group has concluded an agreement with Xinjiang Shiluyuan Economic Trading Co., Ltd to expand their business in the region, targeting an annual trading volume of RMB 300 million ($44.31 million).

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