Iron ore long-term development plan started

On March 18th, China officially launched the preparatory work for its first "Mid- to Long-Term Development Plan for the Iron Ore Industry" in Beijing. Led by the Ministry of Industry and Information Technology, along with the China Metallurgical Mines Association and Angang Mining Company, the initiative aims to develop a comprehensive strategy that includes an overall development plan, specialized strategies, and key regional plans. This 10-year roadmap, covering the period from 2016 to 2025, is designed to address the growing reliance on imported iron ore and ensure a more stable domestic supply chain.

China possesses over 70 billion tons of iron ore resources, yet it still relies on imports for about 70% of its needs. Over the past decade, Chinese steel companies have spent over 2 trillion yuan on raw materials due to high global ore prices, which has significantly eroded their profit margins. In 2013, the sales profit margin for large steel mills across the country was only 0.55%. When considering investment returns, many major steel producers were actually operating at a loss. Several factors contribute to this challenge, but the slow development of domestic iron ore resources and heavy reliance on imports remain critical issues.

With global competition for resources intensifying, it's becoming increasingly urgent to strengthen domestic mining efforts and build a strategic security system for iron ore. According to Shao Anlin, team leader of the planning team and Deputy General Manager of Anshan Iron and Steel Group, current domestic mining enterprises are small, fragmented, and inefficient, leading to low resource utilization and high production costs. This situation not only limits the protection of iron ore resources but also exacerbates environmental challenges. To meet the needs of sustainable economic growth and ensure strategic material security, a coordinated and systematic approach at the national level is essential.

Leading companies have taken the lead in developing this industry plan, drawing on their experience to guide the broader sector. Angang Mining Company, for instance, has implemented a pioneering corporate strategy in China’s metallurgical mining industry, establishing smart mining operations. Since 2008, Anshan Iron & Steel has generated over 35 billion yuan in profits and paid 18.2 billion yuan in taxes. Today, the company stands as a top-tier metallurgical mine enterprise in China, controlling the largest reserves globally, ranking second in extraction volume, fifth in iron ore output, and achieving internationally competitive technologies in ore processing and extraction.

The significance of this plan extends beyond just the industry. From a national perspective, it provides a clear roadmap for the development of mining enterprises, helping to standardize and drive the industry forward while boosting its contribution to the national economy. At the industry level, it encourages resource integration and higher concentration, enabling China to better compete in the global mining market and secure its raw material supply. For individual enterprises, it promotes management improvements, technological innovation, and green development, enhancing competitiveness and long-term sustainability.

Experts and scholars in China are optimistic about the future of this plan. They believe it will establish the country’s first iron ore resource protection strategy, elevating iron ore from a mere commodity to a national priority. This move could help China develop world-class mining enterprises that combine scale with innovation, offering a strong counterbalance to foreign mining giants. The impact of this initiative is expected to be significant and far-reaching, reshaping the global mining landscape in the years to come.