Chinese warn they will buy iron ore from there own...

Chinese warn they will buy iron ore from there own companies.

Below is the extract.I hope the big three show some interest to stop this takeover from happening. A line in the sand is drawn the chinese really want sdl.

Chinese has vowed to break the power of the big mining companies by sourcing 50 per cent of its iron ore imports from Chinese-invested companies.

Iron ore sales to China are the backbone of Australia's record $100 billion two-way trade with the world's second-biggest economy, and help to underpin our economic growth.

China gets less than 10 per cent of its 600 million tonnes of imported iron ore from Chinese-owned companies. More than 60 per cent of its imports come from Australia and Brazil.

The new strategy to source half its iron ore imports from Chinese-invested companies in the next five to 10 years is the centrepiece of the nation's five-year steel plan, which runs to 2015



The government-run China Iron and Steel Association, which represents the nation's largest steelmakers, has identified West Africa as a key new supplier, underscored by last week's $1.2bn bid by Chinese group Sichuan Hanlong for the Australian-listed Sundance Resources, which holds the rights to mine deposits in the region.

"China currently owns less than 10 per cent of imported iron ore. We should seek 50 per cent of ore from Chinese-invested overseas resources in the next five to 10 years," the deputy secretary-general of the China Iron and Steel Association, Li Xinchuang, told the state-run China Daily.

Iron ore imports from Australia, Brazil and India accounted for 62.3 per cent of China's iron ore imports last year, and in the first half of this year imports rose 8 per cent to 334 million tonnes.

The imports cost $US53.8bn ($49.7bn), up 54 per cent in 12 months.

The association said the average price of steel products rose 14.8 per cent from January to May compared with a year ago, while the price for the imported ore surged 47.8 per cent in the same period.

China had so far acquired overseas mining rights capable of producing 150 million tonnes of ore a year, but most of the mines had yet to start production, the association said yesterday.
http://www.theaustralian.com.au/national-affairs/well-buy-iron-ore-from-our-own-companies-chinese-warn/story-fn59niix-1226101625603

Have a good day fingers for the J/V.