South Australian iron ore in demand in China

10 April 2017

CU-RIVER Mining Australia is accelerating production in South Australia as demand from China strengthens. Last month, the privately-owned exploration and mining company shipped another 75,000 tonnes of high-grade magnetite iron ore to Jingtang, in northeast China.

It is Cu-River’s seventh such shipment since it started production at its Cairn Hill mine, south of Coober Pedy.

Cu-River founder, Chinese businessman Mr Yonggang Shan, bought the mine in April, 2015, from the liquidator of IMX-controlled entity Termite Resources. Mr Shan said it is now looking to double exports. He said that “We starting crushing the existing stockpile in June last year. In September, we moved into full mining production and so far we have shipped 525,000 tonnes of iron ore. We’re on track to pass 900,000 tonnes in our first year (and) beyond that, we’re looking to double annual production.”

He said China is the number one magnetite iron ore customer in the world and its steel industry still has a “large appetite” for Australian raw materials. He added that “We are extracting and processing magnetite that contains residual copper which is desirable right across the world. We expect demand will remain strong for our high quality produce, not just from China but elsewhere. Over time, we see strong potential in other export markets such as Chile, Japan, Korea and India.”

Cu-River has created more than 100 jobs and the flow-on effects are being felt near the mine. Mr Shan further said that “We are investing significantly in the mine’s infrastructure. As well as employing locally, we have about 70 rooms permanently booked in a local hotel for staff and we’re chartering weekly flights for workers.”

His advice for SA businesses seeking a sustainable export relationship with China includes understanding the unique culture, the market and being realistic about demand for your product or service.

Source : ADELAIDENOW.COM