China has established a new state-owned company to coordinate the trade of iron ore, the raw material of the iron and steel industry, and mining investments in this area.
According to the news of the economic and financial news service Caixin, the company called "China Mineral Resources Group" entered the trade registry with a capital of 20 billion yuan (about 3 billion dollars).
The records stated that the company will "operate in the fields of mining, iron ore trading and processing, international transport services, supply chain management and asset management services."
The establishment of the company is seen as a step towards China's goal of having a say in the global iron ore trade.
The newly established company is expected to function as a central platform that will single-handedly manage the relations of companies engaged in iron and steel production and trade with vendors. In this way, it is aimed to increase the bargaining power of companies.
It is estimated that the company will control China's mining investments abroad, such as the Simandou iron ore operation in the West African country of Guinea.
In the records, it was noteworthy that the top 5 people in the management of the new company were former senior executives of 4 large state-owned iron and steel and mining companies. Former executives of China Aluminum Company (Chinalco), China Baovu Steel Group, Anshan Iron and Steel Group, and China Metal Mines Company took part in the management of the new company.
China, which buys about 70 percent of the world's exported iron ore, supplies more than half of global steel production.
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