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China plans to increase its iron ore production in overseas mines to 220 million tons by 2025, in addition to increasing domestic raw material supplies.

According to Luo Tiejun, vice president of the China Iron and Steel Association, China aims to “fundamentally” solve the problem of a shortage of steelmaking ingredients in 10 to 15 years. The plan, which the steel body said in January that it had submitted to the state planner, the ministry of industry, the ministry of natural resources and the environmental regulator, is designed to secure steel resources in the medium and long term.

The proposal is to increase China’s share of overseas iron ore production from 120 million tons in 2020 to 220 million tons by 2025. Increase domestic iron ore production by 100 million tons to 370 million tons and steel scrap consumption by 70 million tons to 300 million tons over the same period.

Exploring domestic iron ore is not only about resources but also about competitiveness, with some iron ore concentrate costs in China held below $60 per ton.

The steel association suggested that the plan be implemented by steel giants such as Baowu Steel Group, Ansteel Group, Shougang Group, as well as internationalized metals group such as China Minmetals.

China, the world’s top steel producer, consumes more than one billion tons of iron ore annually, with more than 80 percent coming from imports. It has encouraged companies to invest in iron ore mines at home and abroad to secure resources and gain pricing power.