Shandong Province-based steel producer Rizhao Iron and Steel Co., Ltd. has inked agreements with China CITIC Bank and Singapore-based Pacific Resources Trading Pte. Ltd, a subsidiary of CITIC Group, regarding the construction of its new steel project, at a meeting recently held by the Shandong provincial government.
According to the agreement, CITIC Bank will provide a RMB 5.6 billion ($0.81 billion) loan for the steel project in question. Meanwhile, in 2020 Rizhao Steel will purchase 880,000 mt of pelletizing fine ores from CITIC Pacific Mining via Pacific Resources Trading, worth a total value of $100 million.
Rizhao Steel will start construction of its steel project with a total iron-smelting and steelmaking capacity of 17 million mt in 2020. The project will have an overall investment of RMB 33.0 billion, while it expects to realize a sales revenue of RMB 34.0 billion in 2022 after its completion.
CITIC Pacific Mining is located in the Pilbara region of Western Australia and entered into operation at the end of 2013, mainly producing high Fe-grade iron fine ores, which is a raw material for pellet production.