On December 15, construction work began on the Wushan Taohua iron ore project in the county of Wushan, Chongqing, China. The project in question is a joint investment of Chinese steelmaker Chongqing Iron and Steel and the local government.
The Wushan Taohua iron ore mine covers an area of 28.75 square kilometers, with total explored reserves reaching around 87 million mt of iron ore, mainly consisting of hematite, with an average grade of 44.72 percent Fe but also reaching as high as 56.8 percent Fe.
Commissioning of the first phase of the project is planned to start in 2012, with an estimated investment of RMB 800 million (approximately $120 million). The project also involves the building of the second largest steel production base in southwestern China (second to the facilities of local steelmaker Panzhihua Iron and Steel). By 2015, a total of RMB 1.1 billion (approximately $165 million) will be invested in the project.
Upon completion, the project is expected to have an annual production capacity of 1.2 million mt of raw ore, 500,000 mt of ore concentrate and 100,000 mt of cast iron, with an overall annual production value of RMB 1.5 billion (approximately $225 million).