On April 9, Qinghai Province-based Chinese steelmaker Xining Special Steel Co. announced that it is investing RMB 10 million ($1.6 million) to establish a wholly-owned subsidiary in the city of Geermu in Qinghai Province for the purpose of strengthening regional resource procurement.
The subsidiary named Geermu Xigang Trading Co., Ltd will be mainly involved in procurement, processing and sales of mineral resources, such as iron ore concentrate, iron ore pellets, and ore of other metals including copper, lead, zinc, gold and silver. In addition, it will also be involved in procurement, processing and sales of various renewable resources such as metal scrap.
The subsidiary is expected to guarantee sustainable raw material supplies to its parent company, as well as strengthening control of iron scrap resources in Qinghai and Tibet.