Chongqing Steel gets nod for $260 mln rare metals DRI project
Shanghai. November 18. INTERFAX-CHINA - State-owned Chongqing Iron Steel (Group) Co. Ltd. has got the go-ahead from regulators for a RMB 1.65 billion ($259.65 million) direct reduced iron (DRI) project that will use vanadium titanomagnetite ore from its Taihe mine in Sichuan Province's Xichang County, the firm announced Nov. 17.
The project involves using reducing gases to process the ore and produce DRI, also known as sponge iron, as well as vanadium, titanium and other rare metals that are by-products of the smelting process. The method is intended to improve utilization of these by-products as well as reduce slag discharge.
A first phase with capacity for 500,000 tons of DRI per year is set to come on-stream around year-end, and the entire project is expected to generate annual profits of RMB 265 million ($41.70 million) on revenue of RMB 1.78 billion ($280.10 million) once fully operational.
The Taihe mine contains vanadium titanomagnetite resources exceeding three billion tons, with reserves estimated at 867 million tons of iron, 376 million tons of titanium oxide and 6.6 million tons of vanadium oxide, according to public surveys of the deposit.
China's main vanadium titanomagnetite production bases are Sichuan's Panxi City, Hebei Province's Chengde City and Ma'anshan City in Anhui Province.
- GD