China inaugurates new supply base for iron ore in Jiangsu

The project, actioned by iron ore processing company Jiangsu Xiangyu Technology Development Co. (Jiangsu Xiangyu), took a year to build and cost approximately $150 million, according to the release.

Designed to handle 3 million tonnes/year of iron ore – primarily Brazilian hematite – the project is expected to produce 2.5 million tonnes of concentrates and generate over Yuan 4 billion ($600 million) in annual revenue, as reported. The facility is positioned as an integrated supply chain hub for iron ore blending, deep processing, and distribution services.

The hydrocyclone cluster at the Zhenjiang supply base (Source: Jiangsu Xiangyu)

Spread over approximately 60,000 square metres, the base contains warehouses, production workshops, and an R&D office building with a laboratory, as reported.

The supply base is strategically located in Zhenjiang's Dagang district, close to Zhenjiang Port – the largest transshipment hub for iron ore on the Yangtze River – ensuring efficient logistics connectivity, Mysteel Global noted.

Jiangsu Xiangyu has also established offtake agreements with major steel producers in East China such as Baowu Group and Nanjing Iron & Steel, for stable deliveries of iron ore concentrates once the project ramps up, Mysteel Global learned.

Jiangsu Xiangyu is a subsidiary of Xiamen Xiangyu Group – a commodity supply chain company in Southeast China's Fujian province that has been deeply engaged in the ferrous metals supply for over 20 years and boasts an iron ore concentrating capacity of some 8 million t/y, as reported.

Once operations reach full capacity, the new iron ore supply base is poised to contribute to Zhenjiang's industrial production value, reduce procurement expenses for steel mills in the surrounding area, and support further consolidation of the regional ferrous industry, Mysteel Global noted.

Written by Anthea Shi, shihui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com