On August 18, northern Chinese steelmaker Taiyuan Iron and Steel Group, the world's largest stainless steel producer, signed a contract with China Nonferrous Metal Mining (Group) Co., Ltd to develop a nickel mine in Tatkon, Myanmar.
According to the contract, Taiyuan Iron and Steel Group will invest in CNMC Nickel Co., Ltd, a subsidiary of China Nonferrous Metal Mining (Group) Co., Ltd, increasing its registered capital. After the investment, the subsidiary company will change its name into CNMC Taiyuan Iron and Steel Nickel Co., Ltd.
The newly formed company will be the major developer of the Tatkon nickel project. The project plans to start production in 2011, with a planned annual output of 85,000 mt of ferronickel and 22,000 mt of nickel metal.
Currently, Chinese domestic nickel supplies can only meet 30 percent of domestic market demand.
Taiyuan Iron and Steel Group needs more than 100,000 mt of nickel every year. The Tatkon nickel project has 30 million mt of high grade nickel reserves.