Iron ore import dependence is expected to crack

On March 18th, the preparation of China’s first “Medium- and Long-Term Development Plan for the Iron Ore Industry” officially kicked off in Beijing. Organized by the Ministry of Industry and Information Technology and the China Metallurgical Mine Association, the project is being led by Angang Mining Co., Ltd. The plan will cover overall development strategies, specialized plans, and key regional initiatives, all based on the current state of the industry. It aims to create a 10-year blueprint from 2016 to 2025, playing a crucial role in addressing China’s heavy reliance on imported iron ore. China holds over 70 billion tons of iron ore resources, yet its external dependence remains as high as 70%. Over the past decade, Chinese steel companies have spent more than 2 trillion yuan on high-priced iron ore, with massive costs eating into their profits. In 2013, large steel enterprises with over 5 million tons of annual output had a sales profit margin of just 0.55%, and when considering investment returns, many were actually operating at a loss. Several factors contribute to this challenge, but the underdeveloped domestic iron ore industry and high import dependency are key issues. With global resource competition intensifying, it has become urgent to enhance domestic mine planning and establish a strategic safety system for iron ore supply. According to Shao Anlin, head of the planning team and vice president of Anshan Iron and Steel Group, current domestic mining enterprises are small, scattered, and inefficient, leading to low resource utilization and high production costs. This results in poor protection of iron ore resources and serious environmental problems, making it difficult to meet national economic needs or secure the raw materials required for the steel industry. A comprehensive, strategic-level plan is necessary to integrate and streamline China’s metallurgical mining sector. Leading enterprises like Angang Mining play a vital role in shaping the industry’s future. As a pioneer in implementing development strategies within China’s metallurgical mining sector, Angang has built a smart mine and achieved significant success. Since 2008, the company has generated over 35 billion yuan in profits and paid 18.2 billion yuan in taxes. Today, it stands as a top-tier metallurgical mining enterprise, ranking first globally in controlled resources, second in mining volume, and fifth in iron ore output—reaching international standards. The launch of this planning initiative carries immense significance. At the national level, it provides a clear roadmap for the mining industry, helping to standardize and guide its development while boosting its contribution to the national economy. From an industry perspective, it promotes resource integration, increases industrial concentration, and enhances China’s competitive position in global mining markets, ensuring the security of raw material supplies. For individual enterprises, it drives management improvements, technological innovation, and green development, strengthening competitiveness and long-term sustainability. Experts and scholars across the country are optimistic about the potential of this plan. Many believe it will establish China’s first iron ore resource security strategy, elevating iron ore to a national priority. This move could help China build world-class mining enterprises that combine large-scale production with strong innovation capabilities, serving as a powerful counter to foreign mining monopolies and significantly impacting the global mining landscape.

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