Economy

Shandong Steel ink four cooperation agreements in Xinjiang

(chinadaily.com.cn)
Updated: 2010-08-03 10:03

It is reported that Jinan based Chinese steel producer Shandong Iron and Steel Group inked a total of four cooperation agreements with the Administrative Office of Kashgar and with three companies in the region, with the aggregate investment reaching CNY 3.95 billion.

1. Shandong Steel Group has signed an agreement with the Administrative Office of Kashgar to develop a 1 million tonnes steelmaking program, with a total investment of CNY 3 billion.

2. Shandong Jinling Mining Co a subsidiary of Shandong Steel Group, has agreed to acquire a 100% stake in Kashimir County, Kashgar based Jingang Mining Inc. Shandong Jinling Mining will invest CNY 300 million to develop iron ore mining projects at Qiaopuka mine, aiming to reach an annual production capacity of 1.5 million tonnes of iron ore and 600,000 tonnes of iron ore concentrate within two years.

3. Shandong Jinling Mining has also signed an agreement with the local government of Shule County, located to the south of Kashgar, to establish a 1.2 million tonnes grate-kiln pellet facility. The total planned investment is CNY 350 million.

4. Shandong Steel Group has concluded an agreement with Xinjiang Shiluyuan Economic Trading Co Ltd to expand their business in the region, targeting an annual trading volume of CNY 300 million.

Source: www.steelorbis.com