SteelOrbis Shanghai
On June 1, Shanxi Taigang Stainless Steel Co. Ltd announced that it will establish a joint venture with its biggest shareholder, Taiyuan Iron and Steel (Group) Co. Ltd (TISCO), aimed at exploiting the Shanxi Lvliang iron ore mine which has known iron ore reserves of 1.2 billion mt. Exploitation of the mine will raise Taigang Stainless Steel Co.'s self-sufficiency in iron ore to above 80 percent.
Planned production at the mine is 22 million mt of iron ore per year, with 65-percent iron ore concentrate accounting for 7.5 million mt. The total investment in this project is about RMB 8.8 billion ($1.27 billion). Meanwhile, construction work on the project is estimated to last between two and a half to three years. The holding company behind the joint-venture is TISCO, with the stake of Taigang Stainless not to be lower than 35 percent.