Leading Chinese integrated steel company Hebei Iron & Steel Group (Hegang) has accelerated its foreign resources investments by agreeing to buy into the Cerro Negro Norte (CNN) iron ore project in Chile owned by mining company Compañía Minera del Pacífico (CMP).
Steel Business Briefing confirms with the northern China mill that the two parties signed a memorandum of understanding (MoU) to cooperate on the CNN project on 30 March. Hegang officials declined to comment further, however.
The most likely vehicle for Hegang’s investment in the CNN ore project will be its Hong Kong-based Hebei Steel International Holdings. Formed on the day the MoU was signed, the subsidiary was created to expand Hegang’s international trading and to focus on overseas mineral and resources investments, SBB understands.
CMP’s CNN project, approved by the Chilean environmental authorities back in 2009 and by the company board last August, is expected to cost $574.5m initially and produce 4m tonnes/year of iron ore concentrate, as SBB has reported. The project is part of CMP’s program to lift iron ore output from 9-10m t/y to over 16-17m t/y over the next several years.
CMP has signed iron ore supply contracts with several Chinese steelworks including Xinyu Iron & Steel and Jinan Iron & Steel, SBB understands.
Hegang, one of China’s largest steelmakers, has its headquarters in Shijiazhuang city, in north China's Hebei province, and boasts a combined crude steel capacity in seven steelmaking subsidiaries of over 40m t/y.
Steel Business Briefing confirms with the northern China mill that the two parties signed a memorandum of understanding (MoU) to cooperate on the CNN project on 30 March. Hegang officials declined to comment further, however.
The most likely vehicle for Hegang’s investment in the CNN ore project will be its Hong Kong-based Hebei Steel International Holdings. Formed on the day the MoU was signed, the subsidiary was created to expand Hegang’s international trading and to focus on overseas mineral and resources investments, SBB understands.
CMP’s CNN project, approved by the Chilean environmental authorities back in 2009 and by the company board last August, is expected to cost $574.5m initially and produce 4m tonnes/year of iron ore concentrate, as SBB has reported. The project is part of CMP’s program to lift iron ore output from 9-10m t/y to over 16-17m t/y over the next several years.
CMP has signed iron ore supply contracts with several Chinese steelworks including Xinyu Iron & Steel and Jinan Iron & Steel, SBB understands.
Hegang, one of China’s largest steelmakers, has its headquarters in Shijiazhuang city, in north China's Hebei province, and boasts a combined crude steel capacity in seven steelmaking subsidiaries of over 40m t/y.
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