Iron Ore Mining in China to 2020

China ranked third globally with 23 billion tonnes (Bnt) of crude iron ore reserves in January 2015, equal to 12.3% of the global total. Spread across the provinces of Liaoning, Sichuan, Hebei, Inner Mongolia, Shanxi, Shandong, Anhui, Hubei and Gansu, some 80% of the reserves are mostly low grade. The reserves in north-east China are mainly magnetite and hematite, partly martite and semi-martite, with iron content ranging from 20% to 40% while those in central and southern parts of the country have iron content in the range of 40% to 50%.

Scope

GlobalData's 'Iron Ore Mining in China to 2020' report contains an overview of the Chinese iron ore mining industry together with information on reserves, historical and forecast production to 2020 with supporting factors, historical and forecast iron ore consumption and ores and concentrates imports to 2020 and demand drivers. In addition, it provides information about iron ore prices, the competitive landscape, active, exploration and development projects and the fiscal regime governing the Chinese mining industry.

Key Highlights

• The country consumed an estimated 1,151.8Mt of iron ore in 2014, up by just 0.9% over 2013 due to lower demand for steel from the housing and construction sectors and also due to tough environmental regulations initiated by the Chinese government, which aims to reduce pollution from steel mills.

• In 2014, Chinese iron ore production was an estimated 260Mt (converted to correspond with world average Fe content), down by 19% over 2013 owing to the slowdown in economic growth that resulted in capping demand for steel and in turn for iron ore.

• China imported 889Mt of iron ores and concentrates in 2014. Ores and concentrates originating from Australia and Brazil are of higher grade and available at a comparatively lower prices than the domestic ore and hence is preferred by Chinese end-uses.

Reasons to buy

To gain an understanding of the Chinese iron ore mining industry, reserves, historic and forecast production, iron ore consumption and ores and concentrates imports, prices, demand drivers, active, exploration and development projects, the major iron ore producing companies and the country's fiscal regime.

Companies mentioned

China Minmetals Corporation, Anshan Iron and Steel Group Corporation, Hebei iron & Steel Co., Ltd, Hengshi Mining Investments Ltd, Laiyuan County Aowei Mining Investments Co., Ltd, Taiyuan Iron and Steel (Group) Co. Ltd

Table of Contents

1 Executive Summary 1

2 Iron Ore Mining in China – Reserves, Production, Consumption and Trade 6

2.1 Reserves by Geographical Region and Grade 6

2.2 Historic and Forecast Production 8

2.2.1 Iron Ore production by province/region 10

2.3 Active Mines 11

2.4 Exploration and Development Projects 12

2.5 Iron Ore Consumption, Consumption by End-Use and Ores and Concentrates Import 13

2.5.1 Imports by country 14

2.6 Demand Drivers 16

2.6.1 Demand driver by end-use sector 16

3 Iron Ore Producers in China 17

3.1 China Minmetals Corporation 17

3.2 Anshan Iron and Steel Group Corporation 17

3.3 Hebei Iron & Steel Co., Ltd 18

3.4 Hengshi Mining Investments Ltd 19

3.5 Laiyuan County Aowei Mining Investments Co., Ltd 19

3.6 Taiyuan Iron and Steel (Group) Co., Ltd 20

4 Fiscal Regime 21

4.1 The Chinese Mining Industry – Governing Bodies 21

4.1.1 State Council 21

4.2 The Chinese Mining Industry – Governing Laws 22

4.2.1 Mineral Resources Law 22

4.2.2 Land Administration Law 22

4.2.3 Law on Safety in Mines 22

4.2.4 Environmental Protection Law 22

4.3 The Chinese Mining Industry – Mining Licenses and Ownership 22

4.3.1 Ownership of Minerals 22

4.3.2 Exploration and Mining License 22

4.4 The Chinese Mining Industry – Mining Rights and Obligations 23

4.4.1 Rights 23

4.4.2 Obligations 23

4.5 The Chinese Mining Industry – Key Fiscal Terms 23

4.5.1 Royalty 23

4.5.2 Resource Tax 23

4.5.3 Urban and Township Tax 23

4.5.4 Land Appreciation Tax 24

4.5.5 Enterprise Resource Tax 24

4.5.6 Vehicle and Vessel Usage Tax 24

4.5.7 City Maintenance and Construction Tax 24

4.5.8 Stamp Tax 24

4.5.9 Depreciation 25

4.5.10 Deductions 25

4.5.11 Loss Carry Forward 26

4.5.12 Capital Gains Tax (CGT) 26

4.5.13 Business Tax 26

4.5.14 Withholding Tax 26

4.5.15 Value Added Tax (VAT) 26

4.5.16 Tax Incentive 26

5 Appendix 27

5.1 Abbreviations 27

5.2 Secondary Research 27

5.3 Primary Research 27

5.4 Contact GlobalData 28

5.5 About GlobalData 28

5.6 GlobalData’s Services 28

5.7 Disclaimer 29

List of Tables

Table 1: Iron Ore Mining in China – Iron Ore Reserves, Ore Type and Mine Stage for Selected Mines, 2014 7

Table 2: Iron Ore Mining in China – Iron Ore Production (Million Tonnes), 2000–2020 9

Table 3: Iron Ore Mining in China – Active Mines, 2015 11

Table 4: Iron Ore Mining in China – Exploration Projects, 2015 12

Table 5: Iron Ore Mining in China – Development Projects, 2015 12

Table 6: Iron Ore Mining in China – Iron Ore Consumption vs Crude Steel Production and Ores and Concentrates Import (Million Tonnes), 2000–2020 14

Table 7: Iron Ore Mining in China – Imports by Country (Million Tonnes), 2014 15

Table 8: Iron Ore Mining in China – China Minmetals Corporation, Major Projects, 2015 17

Table 9: Iron Ore Mining in China – Anshan Iron and Steel Group Corporation, Major Projects, 2015 18

Table 10: Iron Ore Mining in China – Hebei Iron & Steel Co., Ltd, Major Projects, 2015 18

Table 11: Iron Ore Mining in China – Hengshi Mining Investments Ltd, Major Projects, 2015 19

Table 12: Iron Ore Mining in China – Laiyuan County Aowei Mining Investments Co., Ltd, Major Projects, 2015 19

Table 13: Iron Ore Mining in China – Taiyuan Iron and Steel (Group) Co., Ltd, Major Projects, 2015 20

Table 14: The Mining Industry in China – Urban and Township Tax (CNY), 2014 24

Table 15: The Mining Industry in China – Land Appreciation Tax (%), 2014 24

Table 16: The Mining Industry in China – Stamp Tax Schedule and Tax Rates (%), 2014 25

Table 17: The Mining Industry in China – Depreciation (Years), 2014 25

Table 18: The Mining Industry in China – Business Tax (%), 2014 26

List of Figures

Figure 1: Iron Ore Mining in China – Iron Ore Reserves by Country (%), 2014 6

Figure 2: Iron Ore Mining in China – Iron Ore Production (Million Tonnes) and Prices (US$/tonne), 2000–2020 9

Figure 3: Iron Ore Mining in China – Iron Ore Production by Province 10

Figure 4: Iron Ore Mining in China – Iron Ore Consumption vs Crude Steel Production and Ores and Concentrates Import (Million Tonnes), 2000 –2020 13

Figure 5: Iron Ore Mining in China – Imports by Country (Million Tonnes), 2004–2014 15

Figure 6: Iron Ore Mining in China – Chinese Construction Industry’s Output by Project Type (US$ Trillion), 2013–2018 16

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