Jingtang Port to build an independent beneficiation plant with annual processing capacity of 9.6 million mt of iron ore

SHANGHAI, Nov 2 (SMM) — Recently, Tangshan Gangkunshi Industry and Trade Co. publicised an independent beneficiation plant project with an annual processing capacity of 9.6 million mt of iron ore. The project, which is located at Jingtang Port, will primarily process imported iron ore fines and sell to steel mills nearby ports in Tangshan.

The first phase of the project will process 6 million mt of iron ore annually and will use Fe 55% iron ore as raw materials to produce Fe65% iron ore concentrates. The second phase will process 3.6 million mt of iron ore annually and purchase iron ore for blending.

According to the preliminary plan, the first and second phase will be put into operation in October 2021 and October 2022 respectively, with a total investment of 832.6 million yuan.

As Tangshan encourages steel mills to relocate, many steel mills have chosen to relocate to the vicinity of Jingtang Port and Caofeidian Port. Jingtang Port, in particular, will effectively reduce raw material and transportation costs of steel mill because of proximity to the port.

There will be a total of 10.8 million mt of capacity at new independent beneficiation plants at Jingtang Port, according to SMM statistics of independent beneficiation plant projects announced in the past two years. These beneficiation plants mainly process low-grade imported ore and provide steel mills with iron ore concentrates with higher grade and lower impurities. However, as the profit margin of independent beneficiation plants is directly affected by the price difference between high and low-grade ore, these projects have not started construction due to the current small price spread.

New independent beneficiation plant projects in Jingtang Port

For more information please refer to our latest editon of China Iron Ore Weekly Monitor.