Wuhan Steel shares Henan Coking coking coal resources in the upstream companies to expand

With the ore and coke and other raw materials pricesnear distance, logistics smooth, cost advantages in
soared, domestic steel giant, Wuhan Iron and Steellogistics and procurement price advantage, you can
Group, in addition to increased efforts to control thealleviate the chronic shortage of Wuhan Iron and Steel
upstream iron ore resources, but also began jointcoke contradiction.
capital cooperation and coke business operations.In addition to iron ore, coking coal is the steel
Yesterday's (12) from Wuhan Iron and Steel Groupcompanies outside the raw materials, due to the
was informed, Wuhan and Coking Co., Ltd. Henanrecent mine disaster, part of the ongoing security
Ruzhou Chak coking coal resources on the jointcheck areas producing mines, coke production is
development of Henan Province at the signingobviously inadequate, coke market has been showing
ceremony, Ruzhou Tin Chak coking company torising trend.
increase their investment way to get to Wuhan in theThis is not the first time shares coke Wuhan Iron and
capital increase develop their respective Ruyang King'sSteel Company, 2008, Wuhan Iron and Steel and
coal mines, Wuhan Iron and Steel investment in moneyPingdingshan Coal Group had already signed a 3.6
funds was 20% of the shares of the company.billion cooperation agreement between the two sides
Shares, the Wuhan Iron and Steel Project each yearwill invest in the development of coal resources,
at least 80% of available prime coking coal.Wuhan has thus become the second largest Pingmei
Wuhan Iron and Steel Group, told reporters inside, Tinshareholders. In addition, with Shanxi Coking Coal
Chak as Henan Ruzhou Coking Co., Ltd. registeredGroup, Wuhan Iron and Steel signed a strategic
capital is small, shares Coking Co., Ltd. Henan Ruzhoucooperation framework agreement, the two sides will
Tin Chak capital investment is also not too big, butjointly build Wuhan Guangxi Fangchenggang coking
since then, but also with the Wuhan Iron and Steelproject.
Coking Co., Ltd. Henan Ruzhou Chak Ruyang withFrom last year, WISCO's overseas mineral resources
King's mine development, the mine's initial investmentdevelopment was significantly faster pace. Because it
amounted to more than 300 million, annual output ofis landlocked, mineral resources, lack of Wuhan Iron
coke 450 000 ~ 600 thousand tons.and Steel, 85% of iron ore per year dependent on
This reporter has learned, King Coal Ruyang countyimports, imports of ore per year only on inland
towns in the territory of proved reserves 70 milliontransportation costs several billion dollars higher than
tons, the average coal seam thickness of 6.65 m,the coastal enterprises, so last year, the company has
maximum thickness of 15 meters. King's Wuhan Ironin Canada , Australia and Africa over the acquisition of
and coal products, and E as steel coking coalthe shares of mining enterprises, and joint mine
important source of supply, product transport by rail,development.