Iron ore is currently a hot topic in China with the iron ore benchmark price negotiations still without resolution. Tension has also been increased with Brazilian miner Vale seeking a 90 percent price hike. In this context, China's Ministry of Land and Resources has announced that Chinese domestic iron ore output reached 0.88 billion mt in 2009, up from 0.26 billion in 2003. Thus, the ministry stressed that the domestic iron ore supply in China has been continuously increasing.
At the recent "National Iron Mine Exploration Achievement Report Meeting" held by China's Ministry of Land and Resources, it was stated that total proven iron ore reserves at Anben and Jidong in Liaoning Province, at Yuazhou in Shandong Province, at Panxi in Sichuan Province, and at Luzong in Anhui Province are close to 10 billion mt. Meanwhile, the Dataigou iron mine of Benxi Iron and Steel in Liaoning Province has proven reserves of 3 billion mt, with the estimated amount in excess of 7 billion mt.
Even if China posts an increasing iron ore output, since iron ore produced in China is of low grade with around 28 percent Fe content, even lower in some regions, the country's dependence on iron ore imports, which have an average Fe content of 57 percent, remains a persisting issue.