African mining seeks further investment from Chinese companies

All of the future production of iron ore will be shipped to China, with China's annual iron ore imports of 10% of the scale, sustainable supply of the Hundred years "Caixin network" (reporter Jiang Jiangning 3rd from Beijing) African Mining Company (African Minerals) Chairman Frank?　　Frank Timis arrived in Beijing this week to seek more investment from Chinese companies to meet its target of more than 75 million tonnes a year. Frank offered the "Olive branch" to Chinese companies: "We need collaborators to achieve our target of 45 million tonnes or even 75 million tonnes per annum, which requires a lot of investment." China is a very suitable partner for me.　　He disclosed that the target of 75 million tonnes would be achieved through five years, in three phases, and that the first phase of the funding was already in place, while the second and third phases required investments of 1 billion and 4 billion dollars respectively. "We are now negotiating with Chinese companies and planning a very large-scale cooperation," he said.　　"However, he declined to disclose the name of the Chinese company he cooperated with, but said it might be announced in a or two months." Frank encouraged Chinese steel companies to invest in upstream industries to get rid of the absolute dominance of the three major miners in the iron ore field. "Our company has a world-class iron ore asset and we can provide 10% of China's annual iron ore imports over the next 100 years," he said. All the iron ore we produce in the future will be shipped to China.　　"He stressed. In January this year, China Iron and steel reached a framework agreement to buy a stake in the African mining industry, buying 12.5% per cent of the African mining sector at a price of 5 pounds and a total of 152.6 million pounds (about $244 million). The investment will be used to develop the first phase of the Tancriri Iron Mine project in Africa.　　In addition, the Chinese iron and steel materials will be entitled to Tancriri the first stage not exceeding 8 million tons/year of hematite and the second stage of not less than 10 million tons/year of magnetite. Frank told Caixin News reporter, according to this purchase and sale agreement, the Chinese iron material will be on the basis of market price discount preferential price, but he did not disclose the specific discount range. "As shareholders, they have not only a guarantee of 1.2 billion tonnes of iron ore resources, but they will be more favorable than the prices they receive from the three major mine suppliers." He also told reporters that the company's iron ore production costs close to $20-25 per ton, close to the Australian mining giant Rio Tinto and BHP Billiton production costs.　　This is mainly due to the proximity of mining areas to the port, the use of electricity and water supply and Africa's low-cost human costs. "We have a very large near-water port ourselves." Vale's Kadagas mining area is 900 kilometers from the port, Rio's mining area is 500 kilometers from the port, and our mine only needs 190 kilometers to reach the port. The cost of energy in Brazil is 4 times to 5 times times that of ours, and the cost of manpower is 20 times times that of ours. This is our unique advantage at low cost. "Frank told Caixin News reporter.