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Ansteel to double production capacity by 2020

By Zhang Yang (chinadaily.com.cn)
Updated: 2010-03-31 13:35

The production capacity of Anshan Iron and Steel Group Corp (Ansteel Group) is expected to double in a decade after renovation and expansion programs, Xinhuanet.com reported Wednesday.

The renovation and expansion plan of Ansteel Group's east zone (or old zone) has been formally approved by the Chinese Ministry of Industry and Information Technology.

Ansteel Mining Industry Company, a wholly owned subsidiary of Ansteel Group, is the largest iron ore producer in China. It owns six open pit iron mines and one underground iron mine, with annual productivity of 45 million tons of iron ore and 15 million tons of fine iron ore, taking up 6 percent of China's total production.

However, theses mines were built in the 1920s to 1950, too old to accommodate Ansteel Group's increasing productivity, and thus posing restraints on the group's general development and the safety of material supply.

After the renovation and expansion, Ansteel's annual productivities of iron ore and fine iron ore are expected to reach 68.5 million tons and 23 million tons by 2015. The annual productivity of iron ore is expected to reach 92 million tons by 2020, more than double the number in 2010.

The project is expected to cost 14.7 billion yuan ($2.15 billion), to be self-financed by Ansteel Group, the report said.