Iron ore long-term development plan started

On March 18th, the official launch of China's first "Mid- to Long-Term Development Plan for the Iron Ore Industry" took place in Beijing. This initiative, led by the Ministry of Industry and Information Technology, the China Metallurgical Mines Association, and Angang Mining Company, aims to create a comprehensive roadmap for the iron ore sector from 2016 to 2025. The plan will include an overall development strategy, specialized plans, and regional development initiatives, with the goal of reducing China’s heavy reliance on imported iron ore and improving domestic resource management.

Despite having over 70 billion tons of iron ore reserves, China still depends on foreign imports for around 70% of its supply. Over the past decade, steel companies have spent more than 2 trillion yuan on raw materials due to high prices, which has significantly eroded their profits. In 2013, large steel mills had a sales profit margin of just 0.55%, and when considering investment returns, many were actually operating at a loss. Several factors contribute to this challenge, but one of the most pressing is the underdevelopment of domestic iron ore resources and the high level of import dependency. As global competition for natural resources intensifies, it's crucial to enhance the planning and construction of domestic mines and establish a strategic security system for iron ore supply.

According to Shao Anlin, team leader of the planning team and deputy general manager of Anshan Iron and Steel Group, current domestic mining operations are fragmented, inefficient, and costly, leading to low resource utilization and environmental concerns. This makes it difficult to meet the needs of a healthy national economy and ensure the strategic security of raw materials for the steel industry. A strategic, coordinated approach is necessary to integrate metallurgical and mining enterprises across the country.

Leading companies like Anshan Iron & Steel have played a key role in shaping the industry's future. Since 2008, Anshan has generated over 35 billion yuan in profits and paid 18.2 billion yuan in taxes. It has become a top-tier mining enterprise with a complete industrial chain, controlling the largest iron ore reserves globally, ranking second in extraction volume, and fifth in iron ore production. Its advanced technologies in ore processing place it among the world's best.

The significance of this plan extends beyond the industry. At the national level, it provides a clear path for the development of mining enterprises, helping to standardize and guide the sector, thereby enhancing its contribution to economic growth. From an industry perspective, it promotes resource integration, increases market concentration, and strengthens China’s position in the global mining landscape. For individual enterprises, it encourages better management, technological innovation, and sustainable practices, ultimately boosting competitiveness and innovation capacity.

Experts and scholars are optimistic about the plan’s potential impact. They believe it will mark the beginning of a national-level strategy for iron ore protection, elevating the importance of domestic resources and enabling China to develop world-class mining enterprises that combine scale and innovation. This initiative could serve as a powerful counterbalance to foreign mining giants and reshape the global mining market in the years to come.