Resources and Energy
Metal and Minerals
Magnetite iron ore
CITIC Limited, through CITIC Mining International, has the right to mine 2 billion tonnes of magnetite iron ore at Cape Preston, 100km southwest of Karratha in Western Australia’s Pilbara region, and has exercised the option to acquire an additional billion tonnes. Sino Iron is the largest magnetite mining and processing project in Australia and has a mine life of over 25 years.
In 2016, Sino Iron achieved significant milestones. In May, lines five and six joined the other four lines in producing premium magnetite concentrate.
In the second half of 2016, Sino Iron began to ramp up concentrate production, while ensuring an integrated “pit-to-port” operation supported by site-based energy and water supply.
From January 2016 to the end of February 2017, more than 13 million wet metric tonnes of premium magnetite concentrate had been delivered to CITIC Limited’s own special steel plants and other steel mills in China. In the year ahead, Sino Iron will continue to optimise its production capabilities by increasing production, maximising efficiency and lowering operating costs as it seeks to achieve the appropriate economies of scale.
The Las Bambas copper mine project in Peru, in which CITIC Metal Group holds a 15% interest, completed its first shipment of copper concentrate in mid January 2016. The project began commercial production in July and reached design capacity in September. As of the end of 2016, production of copper in concentrates had reached 330,227 tonnes.
Through this partnership, CITIC Metal Group has also secured distribution rights on 26.25% of the copper concentrates extracted from the site. In 2016, 220,000 metric tonnes of copper concentrates were distributed through CITIC Metal Group.
CITIC Metal Group holds a small indirect stake in Brazilian miner CBMM, which produces about 80% of the world’s ferroniobium. Through their partnership, CITIC Metal Group holds exclusive distribution rights on this resource in China.
Ferroniobium is used in the production of high strength low alloy steel. CITIC Metal Group primarily serves the medium to large segment.
CITIC Dameng is a Hong Kong listed company and one of the largest vertically integrated manganese producers in the world, engaged in the production and sale of manganese products at various stages. CITIC Dameng owns the largest manganese mine in China and has interests in several other mines in China and in Gabon, West Africa.
CITIC Metal Group and CITIC Resources trade commodities. Major products include iron ore, ferroniobium, copper, aluminium, coal, platinum and steel.