Iron Ore Export
Ferrous Metals Mining
The development and utilization of ferrous metal resources is the core business of Minmetals to achieve strategic transformation and improve its capacity of developing and securing mineral recourses.Since the very beginning of the new century, Minmetals hasconducted a series of mergers, acquisition and restructuring. And now it has the largest and the second largest and the second largest independent iron mines in China, i.e. Minmetals Hanxing Mining Co., Ltd. and Luzhong Mining Co.,Ltd. with iron and manganese reserves of 1,860 million tons and 11.02 milliontons respectively and coal reserves of 450 million tons.
In 2010, Minmetals established Minmetals Mining Holding Co., Ltd., which serves as a platform for the development and utilization of ferrous metal resources. The new company integrates mining, benefication, construction of mine shafts and tunnels, as well as domestic and overseas engineering construction. It also has outstanding technological strengths in deep mining, benefication in complex situations and world-class professional teams on development of metals and minerals.
Focusing on national scarce and key resources like iron, chromium, manganese and metallurgic coal, Minmetals strived to develop markets at home and abroad. In the domestic market, the Group has a number of mines under exploration and construction in Hebei, Shandong and Anhui provinces. In the international market, Minmetals has launched several mine development and resource utilization projects in South Africa and Mauritania, which take a firm step towards being a ferrous metals enterprise with international competitiveness.
Furthermore, Minmetals expands its business in mining engineering sector at home and abroad. The steel rail project for Mechel in Russia set record on general contracting in domestic ferrous metal metallurgical project export, and also recognized by the Ministry of Commerce as Excellent Model of Bilateral Economic and Technical Cooperation.
Minmetals also makes efforts in the field of mineral exploration and expands resources development at home and abroad. The Group's Nihe Model and Songxian Model promoted the combination of commercial mineral prospecting and geological survey of public welfare, which has been widely recognized by Ministry of Land and Recourses and the geological prospecting industry, and has been promoted nationwide.
Ferrous metals are one of the earliest categories of products operated by Minmetals, and its smelting, processing, trading and integrated services are also among the core business of Minmetals, and its smelting, processing, trading and integrated services are also among the core business of Minmetals. With 60 years' business expansion and development, Minmetals has become the largest integrated supplier of metallurgical raw materials and the largest steel trading enterprise in China. Its business scope has been expanded from pure steel import and export to raw material supply, production, processing, distribution and warehouse logistics, with emphasis on one-stop supply chain management service to its clients.
In 2010, Minmetals integrated its steel and ferrous raw material circulation business. Based on the platform of Minmetals Development Company Limited(600058.SH), five categories of business are formed, including supply of metallurgical raw materials, steel production, steel trading and value-added services, logistics and bidding and tendering, which have achieved integrated operation and flattened management.
At present, Minmetals has a supply capacity of 53 million tons of metallurgical raw materials, a production capacity of 4 million tons of mid-heavy and heavy plates, 1 million tons of cold-rolling plating products, 500 thousand tons of iron alloy products, shearing capacity of 500 thousand tons of steel and silicon steel sheets and a marketing capacity of 28.8 million tons of steel products, based on a marketing network with 120 branches for steel products and 80 logistics service branches worldwide with metal and mineral products as its main business.
In the future, Minmetals will make great efforts on three major systems, i.e. supply of metallurgical raw materials, processing and distribution of steel, supply and distribution of engineering steel; three platforms, i.e. building of e-commerce, integration of steel/raw material commerce logistics center and cooperation of industry associations. Minmetals is committed to becoming the largest integrated steel circulation service provider in the world.