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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5531)	11/2/2005 8:36:49 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Good news!--China's Tonghua Steel to develop North Korea's largest iron ore deposit Shanghai. November 1. INTERFAX-CHINA - Tonghua Iron and Steel Group, a mid-sized steel maker in northeastern China, has been granted rights to develop the largest iron ore deposit in North Korea, according to local government officials. "I've heard that the Tonghua Steel is going to a sign contract with the Musan iron ore mine, however, I do not know details about the project," an official with the industry department of the Jilin Development and Reform Commission, who asked to remain anonymous, told Interfax. Tonghua Steel, a state-owned steel maker based Tonghua City in Jilin Province, will be granted 50-year exploration rights at the Musan iron ore deposit in North Korea, according the Jilin-based East Asia Economic News. The steel company will pay RMB 7 bln (USD 867.41 mln) to launch the project in North Korea, the Jilin government-owned newspaper reported. According to the newspaper, the total investment will be RMB 7 bln (USD 867.41 mln) - RMB 2 bln (USD 247.83 mln) for construction and RMB 5 bln (USD 619.58 mln) for equipment and technology for the mining project. Additionally, Tonghua Steel has established an agreement with the National Development Bank for RMB 2.4 bln (USD 297.40 mln) in loans. Jilin’s Yanbian Tianchi Stock Holding Co. and Sinosteel Corporation will probably join the project. Musan Iron Ore Mine, the largest iron ore deposit in North Korea, owns 7 bln tons of iron ore with an average grade of 66%. The Musan mine will provide 10 mln tons iron ore to Tonghua Steel per year once the project is operational. An official with Northeast Asia Division of Jilin Department of Commerce, who asked to remain anonymous, told Interfax that Tonghua Steel planned to boost steel capacity to 10 mln tons per year by 2010, which means the company needs to increase iron ore supply. The official said it was inappropriate to say too much right now because the provincial government has not officially approved the project. Tonghua Steel is capable of producing 2.52 mln tons of steel products per year, and must import 1.62 mln tons iron ore yearly. A neighbor of North Korea, the Jilin government hopes to benefit from the country's mineral resources. The provincial government has negotiated deals with the North Korean government to swap power for mineral ore. Jilin has been eyeing for a long time North Korea's Musan Iron Ore Mine, Hyesan Youth Copper Mine, and Manpo lead & Zinc Mine. -IC interfax.cn