Several days ago, Zhu Jimin, director of China Shougang Group, said to the journalists that Chinese iron and steel enterprises looking for overseas mineral resources has become a trend. Baosteel Group, Shougang Group etc. have been reached intention of exploiting mines in Africa, Australia, Brazil etc.
Mr. Zhu Jimin said that, when he accepted the journalists' exclusive interview, nowadays Chinese mineral self-support rate is 45%-50%, Shougang Group self-support rate is around 30% and other 70% should rely on import, it's indeed that we are in lack of iron mineral. However, he thinks that China itself doesn't lack iron mineral resources, it's just because the global iron and steel production increases too fast but many domestic mineral resources have low classes and should comply with high technics demands. Besides, the exploitation and machining of minerals can't meet the needs, so these reasons lead the lack of minerals. Along with the ability of exploitation develops, the problem of lacking of iron minerals would be catabatic obviously in two or three years.
At the moment, the trend of Chinese iron and steel enterprises looking for overseas mineral resources begins to emerge. It's reported that Baogang has been exploited mines in Australia, Brazil. Angang Steel company also has been reached agreement of overseas mineral exploitation. Zhu Jimin expressed that Baogang and Shougang would reach the first batch of agreement of overseas mineral exploitation in the first Quarter next year.
Zhu Jimin said that the present enterprise which buy or exploit overseas iron mineral don¡¯t transport the minerals directly back to China but sell them in the local places and then return to China in the form of capital to compensate domestic mineral indentation indirectly. There are not very much resistance for Shougang to exploit overseas mineral, and it has bidden for the local project bidding invitation in Africa, while it will exploit mineral in Australia through market exchange and the exploit intention has been basic clear.
