Chinese steel producer Chongqing Iron and Steel Group (Chongqing Steel) has announced that it has officially started construction work at its Extension Hill magnetite iron ore project in Western Australia.
Chongqing Steel is expected to invest $3 billion in the project, constituting the largest overseas investment of the company. The site has proven reserves of 1.668 billion mt and estimated potential reserves of 3.7 billion mt. Iron ore at the site has an average iron content of 39.4 percent. Construction work on the project is expected to be completed by the end of 2013, with production expected to start in 2014. The annual output capacity of the mine is expected to be 10 million mt.