Angang,a large steel maker in the world in terms of crude steel output,announced CNY 18.6 billion investment plan to expand 7 existing mines,construct 3 new mines and update 2 tailings reservoirs in a hope to raise its iron ore independency ratio to 75%in 2010 versus less than 50%at the current stage.
But analysts see deficiencies
a)Long construction process.This investment requires a lot of construction and may take one or two decade before full production.
b)High capital input.If offshore quotations break USD 70 per metric tonne to USD 80 per metric tonne,the project would be uncompetitive.
Source:
http://www.steelguru.com/raw_material_news/Analysts_see_deficiency_in_Angang_iron_ore_expansion_project/296696.html
