Posted on 14 Nov 2023
China Mineral Resources Group (CMRG), the state-owned company managing domestic mineral resources, has signed strategic partnership agreements with 13 domestic and foreign enterprises on the sidelines of a conference held with global mineral resource developers and logistics firms on November 7, Mysteel Global learned. The conference was a supporting event for the 6th China International Import Expo held in Shanghai over November 5-10.
Set up by China's central government in July last year and headquartered in the Xiongan New Area in North China's Hebei province, CMRG is charged with helping to guarantee the supply of important mineral resources by making use of domestic and international markets and resources crucial for the security of Chinese industry, especially steel production, as Mysteel Global reported.
Among the 13 enterprises newly partnered with CMRG are financial institutions such as the Export-Import Bank of China and China Development Bank, firms involved in port management including Tianjin Port Group and the Port of Lianyungang, both major iron ore receiving ports, the research organization China Institute for Reform and Development, Luxembourg-headquartered ferrous and nonferrous metals miner and trader Eurasian Resources Group, and Western Australian iron ore miner Roy Hill Holdings.
"Over the past year, CMRG has built close cooperation with domestic and international companies, aiming to create a collaborative ecosystem for the global ferrous industry," Group chairman Yao Lin told delegates at the conference.
Based on its new partnership agreements, CMRG will "further innovate cooperation models and enrich collaboration content to effectively address various challenges in the supply chain of mineral resources," according to Yao.
Currently, the high prices of iron ore globally have become a part of the drag on the sustainable development of China's steel industry, according to Jiang Wei, vice-chairman of the China Iron and Steel Association (CISA), with the high costs and narrow profits obstructing steelmakers' investment in low-carbon production technologies, he told conference attendees.
"During January-September this year, China's total crude steel output had increased by 1.7% on year to reach 795 million tonnes, indicating the domestic steel industry's strong resilience," said Jiang. "However, over the nine months the total profit earned by the member mills of CISA had dropped 34.1% on year, which harmed the steady development of the industry," he added.
Jiang emphasized that a stable and sustainable development of China's steel sector is not only beneficial for the growth of the country's economy but also conducive to the healthy development of the global iron ore industry. He called on all partners in the iron ore supply chain to make joint efforts to establish a mechanism that aligns with the interests of all industry parties.
Source:Mysteel Global
