Pangang to rule Sichuan's iron ore

Pangang to rule Sichuan’s iron ore

Almost two years after receiving exploration rights to the Baima iron ore mines in Panzhihua City, Sichuan-based Panzhihua Iron and Steel Group (Pangang) is nearing completion of the first stage of a project to exploit the Baima mines' 6 billion tons of iron ore reserves. The mines will initially produce 1.1 million tons of iron ore per annum, increasing to 2.3 million tons per annum in 2007. Not content to settle for only the Baima mines, Pangang is also trying to obtain the exploration rights to the Hongge mines in Miyi County of Panzhihua City. The Hongge mines are China's largest vanadium-titanium magnetite iron ore property. Pangang's intent is to increase the company's own iron ore reserves from its current 823 million tons to more than 1.6 billion tons by 2011. If the Hongge deal comes to fruition, Pangang will own 40% of the iron ore lands in western Sichuan. The company currently holds 20.6% of the total iron ore lands in the area.