China, Russia start construction of iron ore dress

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China, Russia start construction of iron ore dressing plant
Russian and Chinese companies started construction of an iron ore dressing plant Friday in the Evreyskaya Autonomous Oblast to provide high-grade iron ore to the Asia Pacific region,[link widoczny dla zalogowanych], including China.Yury Makarov, chief executive officer of IRC Ltd.,[link widoczny dla zalogowanych], told Xinhua the plant would reach its designed capacity in 2013 at 10 million tons of iron ore and 3.2 million tons of iron ore concentrates, which contain up to 65 percent iron.
Makarov said that 20 percent of the iron ore concentrates,[link widoczny dla zalogowanych], which are natural iron ore processed through crushing,[link widoczny dla zalogowanych], grinding and dressing,[link widoczny dla zalogowanych], would be used to meet demands of Russia's far east and the rest would go to the Asia-Pacific market. Currently,[link widoczny dla zalogowanych], China imports large amounts of concentrates from Brazil, Australia and India.
"We are very open to interaction with various countries of the Asia-Pacific region, especially China. The volume of processed iron ore has been increasing every year. We will be happy to deliver iron ore to your companies as well as any other consumers who are willing to purchase our products,[link widoczny dla zalogowanych]," he said.
The plant will draw its resources from the Kimkanskoye and Sutarskoye deposits and send its products through the Khabarovsk Krai and the Suifenhe port to China.The plant is only 7 km from the Trans-Siberian Railway. A railway bridge is being planned between Evreyskaya Oblast and Heilongjiang to further shorten the supply route.
Total investment in the plant is 400 million U.S. dollars,[link widoczny dla zalogowanych], with 340 million in loans from the ICBC (Industrial and Commercial Bank of China) in China. Interest under the facility will be charged at 2.8 percent above LIBOR per annum. The China National Electric Engineering Co,[link widoczny dla zalogowanych], Ltd is tasked with the construction of the plant.
Makarov said he was very optimistic about the future of the plant and the development of relations between the Russia's far east and China's northeastern region.IRC Ltd. is a metal unit of Russian gold miner Petropavlovsk PLC. It became the second Russian company to be listed on the HK stock exchange, when it started trading on Oct. 21.
Chinese Vice Premier Hui Liangyu on Friday urged local governments to step up efforts in protecting agricultural production as winter wheat growing regions in the north of the country have been suffering due to the prolonged drought.Hui warned that the drought could cause great harm to agricultural production.Rainfall in north China,[link widoczny dla zalogowanych], including provinces of Shanxi,[link widoczny dla zalogowanych], Hebei and Shandong,[link widoczny dla zalogowanych], has decreased 20 to 90 percent from the average rain in the same period since October last year.
Hui urged local departments to improve meteorological monitoring and analysis of the drought,[link widoczny dla zalogowanych], and provide training and services to farmers in order to reduce losses brought about by scarce rain.He also called on local governments to step up construction of more water conservancy projects to better cope with dry weather.
Meanwhile,[link widoczny dla zalogowanych], the drought in the north is compared with the intensive icy rain and snow in south and southwest China. A lingering cold spell has been wrecking havoc in these regions,[link widoczny dla zalogowanych], disrupting vegetable production,[link widoczny dla zalogowanych], transportation,[link widoczny dla zalogowanych], and supplies of daily necessities.Hui said the central government would also beef up support in helping these affected regions resume agricultural production as soon as possible.
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