Green light for Baosteel's Zhanjiang Project

SteelOrbis Shanghai Baosteel's 10 million metric tons per annum capacity steel mill construction on Dong Hai Island in Zhanjiang City, Guangdong Province project obtained approval from the State Council. Baosteel Group is investing RMB 14 billion ($1.75 billion) for the project. The project, which has a locational advantage in terms of importing iron ore from Australia, has long been delayed due to the macro-economic control policy. There are not many large scale mills in South China, which is a major steel consumption region. Therefore, relevant authorities are supporting the project and encouraging local steel mills in the province to participate in the project. Guangzhou Steel has expressed a great interest in the project.