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 2015, Sino Iron continued to make good progress. Production lines 3 and 4 completed construction on schedule and commenced production towards the end of the year. As at the end of February 2016, more than 7 million wet metric tonnes (wmt) of premium magnetite concentrate had been shipped to CITIC Limited’s own special steel plants, as well as other steel producers in China.
In early 2015, CITIC Limited’s purpose-built mini-cape vessels joined the operation, adding the final element in an integrated project, from mining and processing to power and water supply and port operation.
Looking ahead, the construction of the remaining two lines is targeted to be completed in the first half of 2016, which will mark the completion of the construction phase. The processing team faces the challenge of increasing the production of the first two lines, while completing load commissioning of the remaining lines and ramping up production.
The Las Bambas copper mine project in Peru, in which CITIC Metal holds a 15% interest, is currently close to completion of construction. First copper concentrate was produced at Las Bambas in late December as part of commissioning activities. The project is estimated to begin commercial production during the second half of 2016.
Through this partnership, CITIC Metal has also secured distribution rights on 26.25% of the copper concentrates extracted from the site. The Las Bambas project will allow CITIC Metal to achieve synergies with its existing trading operation in copper cathodes.
CITIC Metal holds a small indirect stake in Brazilian miner CBMM, which produces more than 80% of the world’s ferroniobium. Through their partnership, CITIC Metal holds exclusive distribution rights on this resource in China.
Ferroniobium is used in the production of high strength low alloy steel. CITIC Metal 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.
We trade commodities primarily through CITIC Metal, CITIC Resources and CITIC United Asia. Major products include iron ore, ferroniobium, copper, aluminium, coal, platinum and steel.