Iron ore project based in Mongolia has been testing, and will be put into operation in 2011, said Mr.Xie Nanyang, Vice President of North Asia Resources.
Its gold sand mine will be started up as of April or May 2011. Mongolian government will revoke the super profit tax in gold sector, and the company is expected to enjoy net cash flow. Mr.Xie highlighted that the company will still take iron ore as key business; iron ore trade takes up 80-90 percent of the company's sales income.
In the past year, the company has invested US$ 60 million in exploiting gold and iron ore mines, said Mr.Xie. Now the company has owned around 150 million tonnes of iron ore reserves in Mongolia.
The company ever announced to input another CNY 170 million to acquire two mines in central Mongolia which hold the reserves over 100 million tonnes. After the acquiring, the company will cost US$ 50 million in exploitation. At the moment, the cash is not a question.
Xie also disclosed that North Asia Resources has bought 20 hectares area from China Railway Corp. to establish the station to facilitate the iron ore transportation. Meanwhile, the company has got the China Railway Corp. Mongolia Branch. The line can load 10 million tonnes of iron ore annually.
As he unfold, Mongolian iron ore is 38 percent in Fe content on average, higher than China Mainland's 10-12 percent Fe contained iron ore. The operation of Mongolian ore can save a half cost, compared to Chinese iron ore.
(To contact the reporter on this story: tongmei@steelhome.cn or 86-21-50585358) |
