Iron Ore - Speed up the base construction of overseas supply
CHINA MINING held two forums with the theme of iron ore on Nov. 3rd. Researchers and entrepreneurs from domestic and foreign mining field conducted a comprehensive analysis and interpretation about current and future global iron ore production, supply and demand and price trends and other hot issues. They put forward some suggestions on how to deal with the challenge of Chinese resources——Accelerate the pace of overseas iron ore supply infrastructure.
Wang Yingsheng, director of Market Research Department of China Iron and Steel Industry Association, introduced that since 2011 the domestic steel prices plummeted, and the current price is the same as that of 20 years ago. However, the cost of production has increased substantially and therefore the entire steel industry entered into low profit or loss situation. Even so, in the long run, as China`s urbanization, industrialization and agricultural modernization, the demand for steel will still maintain a growth trend. As the international countries engaged in their exploration and development of iron ore currently, the global iron ore production has been increasing. We can expect in the next few years, the global iron ore supply will be adequate with an annual output of about 0.7billion ~ 0.8billion tons.
Wang Jionghui, the GM of Exploration and Development Company of China Minmetals Group, said in his speech, up to now, our dependence on foreign iron ore rose to 68.5% with a consumption of 5.3 tons of iron ore resource per capita, which has great difference between China and the other developed countries. It has a great potential in the iron ore exploration market.
Wang Jionghui said, up to now, the four iron ore giants BHP, Rio Tinto, vale and FMG`s iron ore production accounted for 40% of the total output of global iron ore, its shipping capacity accounted for 70% of the one of the whole world. From 2013 to 2019, global iron ore production will be planned to add750 million tons, of which four iron ore giants accounted for 480 million tons which is 64% of the production planned to add The four global iron ore base, namely Australia, Brazil, India and South Africa has been formed gradually in the future. Therefore, the current challenge we need to face was highly centralization of the global iron ore supply structure and the monopoly prices as well.
Wang Jionghui suggested that in order to cope with the long-term monopoly situation by iron ore, China`s mining enterprises should accelerate the construction of overseas iron ore base. If the overseas iron ore mining rights increased, it would make the iron ore prices return to a certain level, otherwise the price situation monopolized by four giants was difficult to break.
Chen Jiabin, director of manage research room of China Land Resources Economy Research Institute, also introduced in his paper the comprehensive utilization of the iron ore tailings. At present, the discharge amount of iron ore tailings was about 800 million tons, and the average grade of iron was more than 10.5%, which distributed in the iron ore raw material base. Among them, 25%iron ore tailings can be recyclable to reuse, but the mining our country did not carry out utilization comprehensively accounted for the majority. The comprehensive utilization of tailings has a great potential. (Wei Yufang)（Translated by TLRHVC）
About CHINA MINING
As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2013 were held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.
