SteelOrbis Shanghai
In 2006, the domestic supply of
iron ore increased sharply in
China. During the January-November period,
China's combined
iron ore output from its major domestic mines amounted to over 500 million tons with a growth rate of nearly 39 percent year on year. According to the approximate data, the total domestic output in 2006 will be close to 600 million tons when the figures of the various smaller mines are also taken into account. Such an output would represent an increase of over 30 percent in the growth rate of the country's
iron ore output compared to last year. Such a rate of growth is much higher than that seen in the domestic steel output or in
iron ore imports.
Furthermore, in the mine explorations of recent years, some large new
iron ore mines endowed with rich reserves have been found. The most important of these new
iron ore mines are located in the central and western regions of
China. In the western regions, the total volume of discovered
iron ore is more than 760 million tons, with a total of at least over two billion tons of
iron ore thought to be lying under the ground. These reserves have also been good news for
China's steelmakers in their efforts to jockey for a better position in the price talks with the world's big
iron ore suppliers.
However, a serious problem lies in the way of developing these new
iron ore resources in western
China - the problem of environmental protection. The recently-explored
iron ore mines are mainly located in Xinjiang (northwestern
China) and in Tibet (southwestern
China). Regarding the former, it is relatively easy to develop the ore sources there without serious environmental pollution problems because the major areas are sparsely populated desert and barren lands. The
iron ore reserves discovered in this area total around 160 million tons.
Tibet is a different case. It is well known for its rich natural resources such as copper, iron, and other metals. According to the latest data, the total reserves of
iron ore may be over 500 million tons, a certain part of which is of rich content. However, Tibet has a very important role in the environmental and ecological system in
China and also in the world's ecological system. Located at high altitude, many big rivers have their sources here, such as the Huanghe River and the Changjiang River. Careful attention will need to be given when making decisions on the future development of these local
iron ore resources, or else serious consequences may be faced if the local water resources and brittle ecological system are polluted or destroyed by the development of mines. This would likely lead to a disaster for the whole world.
The same problems exist in some other
iron ore mines located in the northeastern and central regions of
China. There is a huge population and a great number of industries in these areas. The development of new ore mines will inevitably have a great impact both on local people's lives and on the development of the local economy.
The conflict between healthy economic development and environmental pollution has come to a head and the Chinese government has to face it and find a range of appropriate responses and solutions to the problems. Currently, discussions on the issue are heard widely across society. Normally,
China's local governments chase after their own short-term interests rather than think of long-term issues such as the environment. Thus, if the central government doesn't make a strong stand, it is possible that the environment could be ruined beyond repair. However, due to the widespread concern in
China today,
China's central government now tends to pay more attention to the environment and to the issue of sustained development.
In conclusion, if the environmentally-aware views win the day and related state policies are effectively implemented,
China's growth in
iron ore supplies can expect to see a slowdown in the near future.