Hebei Steel gets green light for phase II of Sijiaying mine
Shanghai. August 1. INTERFAX-CHINA - Hebei Iron Steel Group (Hebei Steel) has received approval from the National Development and Reform Commission (NDRC) to begin the second phase of mining at its Sijiaying iron ore project in Hebei Province's Tangshan City, the NDRC announced July 28.
The second phase has a projected output of 7 million tons per year and will require a total investment of RMB 2.8 billion ($435.12 million), according to the announcement.
With current reserves of 810 million tons, the Sijiaying project has the potential to become Asia's largest iron ore mine, Umetal analyst Hu Kai told Interfax.
"It is a key project for the company as the steady supply of raw materials will help it keep costs down as iron ore prices continue to climb," Hu added.
The first phase of the project, operated by Hebei Steel Group subsidiary Tangshan Iron Steel Co. Ltd. (Tangshan Steel), has an annual output of 8 million tons and required a total investment of RMB 19.2 billion ($2.98 billion), the announcement added.
- PY
