China’s Sinosteel Corp. has signed a US $690 million contract to exploit an iron ore mine in southern Cameroon amid a push to cut Chinese reliance on Australian and Brazilian ore.
According to the agreement, Sinosteel will produce 10 million tons of ore annually containing 33% iron from the Lobe mine. Zheng Zhengao, who heads the Cameroonian subsidiary said the move will enrich the output to produce 4 million tons of high-grade ore with more than 60% iron content.
The Chinese company signed a 50-year contract with the central African government to exploit the Lobe deposit, which contains an estimated 632.8 million tons of iron ore. The signing comes nearly a decade after Sinosteel first expressed interest in the mine.
Sinosteel is mainly engaged in developing and processing of metallurgical mineral resources, trading and logistics of metallurgical raw materials and products, and related engineering technical service and equipment manufacture. It is a large multi-national enterprise with clear-defined core businesses that integrate resources development, trade & logistics, engineering project and science & technology, equipment manufacturing and specialized service, providing comprehensive auxiliary service for steel industry and other strategic emerging industries.
After dozens of years of development, Sinosteel has accumulated strong driving force. Looking forward to the future, Sinosteel will fully exert its advantages, accelerate the transformation of economic development mode and the adjustment of economic structure, actively expand strategic emerging industires and enhance the comprehensive strength.
The commitment will remain that Sinosteel endeavors to improve the finance service ability and the depth of the integration of industry and finance, pay attention to the expansion of industrial extension and provide metallurgical industry with integration services of resources, science and technology and equipment. With all these missions bearing in mind, Sinosteel strives for establishing a large group enterprise that is based on trade and logistics, supported by resources and equipment and focuses on engineering science.