On March 7, Gu Jianguo, chairman of Maanshan, Anhui Province-based Chinese steelmaker Maanshan Iron and Steel Company Ltd (Masteel), said that 75 percent of the iron ore Masteel uses in its production consists of imports, with the result that the recent rising ore import prices have significantly increased the company's production costs. Therefore, M. Gu said, Masteel hopes to accelerate the exploration of its own mineral resources and increase the share of its own iron ore resources in its overall ore consumption to 30 percent by the end of the 12th five-year plan period (2011-2015). In addition, the company is also interested in acquiring overseas mineral resources, the Masteel chairman stated.
Mr. Gu also said that, with profitability in the Chinese steel industry currently at low levels, Masteel will seek to increase its production of high value-added products such as steel products applied in high-speed railways. Masteel also hopes to increase the share of its non-steel business revenues in its overall revenues in the 12th five-year plan period.