Balla Balla Iron Ore Sales
Chengde Iron & Steel Facilities
Chengde Steel Making OperationsChengde Iron & Steel
Aurox has been working with the Chengde Iron and Steel Group since 25 April (Anzac Day) 2006. The technical cooperation and growing friendship has led to the signing of a 15 year 3 million tpa sales agreement for the supply of Balla Balla magnetite ore.
Thus on the 13th of March 2007 Aurox announced the signing of a long term Sales Agreement to supply Chengde Iron and Steel Group Company Ltd with 3 million tonnes per annum of titanomagnetite iron ore concentrate from its Balla Balla project.
The agreement links the concentrate sales price directly to the ‘Hamersley Premium Fines price’ negotiated annually between the world’s major steel producers and Australian iron ore suppliers.
Chengde Iron and Steel Group Co. (“Chengde”) is one of the world’s largest low-cost vanadium producers, making vanadium slag as a by-product of steel production using a feedstock of vanadium-rich titanomagnetite concentrate. First production from Balla Balla will coincide with the expansion of Chengde’s steel plant, located in China’s Hebei Province, from a reported 4.4 million tonnes per annum (“tpa”) to 8 million tpa steel. Chengde is part of the Hebei Iron & Steel Group; China’s largest steel producer.
The RockCheck production facility near the port city of Tianjing, China
Expansions Underway at RockCheck Steel FacilitiesRockCheck Steel Group
The RockCheck Steel Group is undergoing the installation of DRI iron making units which have the capacity to use Balla Balla type magnetite iron ore. RockCheck’s initial requirement is 3 million tonne per year to which they have signed a 15 year Sales Agreement with Aurox. The relationship between the companies is further secured by a $10 million equity investment in Aurox by RockCheck.
The agreement links the concentrate sales price directly to the ‘Hamersley Premium Fines price’ negotiated annually between the world’s major steel producers and Australian iron ore suppliers.
RockCheck Steel Group Co. (“RockCheck”) is a major Chinese high quality flat steel producer located near the port city of Tianjing, close to Beijing. RockCheck’s strategic position near the coast provides the company with a favorable logistics advantage compared to other steel makers located further inland and puts RockCheck in a good position to expand further. With a pig iron production capacity of 4 million tonnes per annum, and 2006 actual steel production of 3 million tonnes, the company ranks in the top 100 global steel producers. According to Metal Bulletin, RockCheck is one of China’s top 10 privately owned steel mills.
Furthermore, RockCheck is one the lowest cost pig iron producers and one of the top taxpayers in Chinese steel industry.