Anhui Province-based Chinese steelmaker Maanshan Iron and Steel (Masteel) has announced that it plans to issue medium-term bonds worth RMB 1 billion ($158 million) to raise funds for its Zhangzhuang iron ore project.
Masteel stated that currently it has an annual steel production capacity of 16 million mt, while it supplies 70 percent of its iron ore needs from imports. In 2011, Masteel imported 15.95 million mt of iron ore with an average import price of RMB 1,182/mt ($186/mt). In the first quarter this year, the steel producer imported 2.6 million mt of iron ore with an average price of RMB 1,177/mt ($185.6/mt).
The Zhangzhuang iron ore project, in which total investment is expected to be RMB 2.42278 billion ($382 million), is scheduled to start official production by the end of 2015. On November 23, 2011, China's National Development and Reform Commission (NDRC) had given its approval for construction of the project. The project is expected to have an annual output of 1.71 million mt of iron ore concentrate with 65 percent Fe content.