China is expected to own rights in more than 100 million tonnes of overseas iron ore assets next year, according to estimation of the country's leading steel information provider this weekend.
The estimation has included assets owned by Chinese firms following the purchase of China's Hunan Valin Iron and Steel Group in Australian mining company Fortescue Metals Group (FMG), said the Beijing-based Lange Steel Information Service, an online information provider.
Hunan Valin's purchase in Australia's third-largest iron ore producer has been approved by the National Development and Reform Commission, but the deal still needs further approvals from the Ministry of Commerce and the State Administration of Foreign Exchange.
The deal, if secured, would ensure a yearly iron ore supply of 10 million tonnes for Hunan Valin from FMG.
Lange said six Chinese steel producers, including Baosteel, Sinosteel and Hunan Valin, have each secured rights in an annual supply of more than 10 million tonnes of overseas iron ore assets.
Another four producers have obtained a combined supply of 12 million tonnes of iron ore from overseas suppliers, according to Lange.
Wang Guoqing, a Lange analyst, said about 80 percent of China's overseas iron ore supplies are in Australia, which have been obtained through stake purchases, purchases of assets, joint ventures and joint development.
China imported 443.56 million tonnes of iron ore in 2008, bringing the country's reliance on imported iron ore to around 50 percent.
About 20 percent of China's imported iron ore is actually owned by domestic firms, while the percentage for Japan and European countries is about 60 percent, according to Lange.
Source: Xinhua
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