Singapore (Platts)--21Feb2013/631 am EST/1131 GMT
Wuhan Iron & Steel Group, one of China's top three steelmakers in terms of crude steel capacity, plans to bring online its iron ore concentrating facility in Liberia, West Africa, in the second half of this year, a company official said Thursday. The first phase of Wugang's multi-phase project to redevelop the Bong mine in central Liberia will see the production of 1 million mt/year of iron ore concentrates for export to the steelmaker's plants in Hubei province, central China, said the official with the company's overseas resources investment department. "Looking at the progress of construction on the Bong project, we will definitely be able to start first-stage mining and concentrating this year," she said. She was unable to comment on when first shipment would begin. The project has been delayed by almost a year, but the official said it was common for schedules to slip for such massive undertakings. The Bong project is developing one of the largest iron ore deposits in Africa, estimated to contain 4 billion mt of proven and probable resources at an average 36%-Fe content. Wugang acquired a 60% controlling stake in the project in 2010 from the Liberian government, after production at the existing Bong mine was halted in 1989 due to a civil war. The first phase of Wugang's project will see the production of 64.5%-Fe concentrates, said the official. Wugang plans to eventually expand concentrating capacity to 10 million mt/year and produce 64.5-65%-Fe concentrates. Once operating at full capacity, the Bong project will play a crucial role in helping Wugang realize its target to reach total self-sufficiency in iron ore within three to five years from domestic and overseas iron ore operations. Wugang has 40 million mt/year of steelmaking capacity in Wuhan, Hubei province.--Hongmei Li, hongmei_li@platts.com--Edited by Russ McCulloch, russ_mcculloch@platts.com; Deepa Vijiyasingam, deepa_vijiyasingam@platts.comSimilar stories appear in Steel Markets Daily. See more information at http://www.platts.com/Products/steelmarketsdaily