Channar iron ore mine, Sinosteel's overseas joint venture project with Rio Tinto in Australia, is in constant operation, China's metal giant announced here on Friday denying rumors the mine has been shut down following massive losses.
"All the company businesses, including our overseas projects are in good shape. There is no such thing as losing money," said Sinosteel in a statement.
According to the state-owned steel maker and trader, Channar cut production in late November because of shrinking market demand. It has already resumed normal operation.
Some media reported this week that the mine has been closed since Nov. 19 as Sinosteel suffered from a huge loss. This aroused concerns that it may affect the operation of Midwest, an Australian mining company. Sinosteel holds 98.5 percent of its shares.
"Midwest is running smoothly at present and we have strong confidence in its long-term development," the statement said.
Sinosteel and Rio Tinto, world's second largest mining group, signed agreement to jointly develop Channar back in 1987. The mine yields 10 million tonnes of iron ore every year for China since its operation in 1990.
Source:Xinhua
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