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Tuesday, 25 October 2016

Over 10% of China’s Iron Ore import comes from Sierra Leone & South Africa

With a total of 100 million kilowatt electricity generating power in China, Shandong province with a total population of ninety-seven (97) million has been ranked number one in the country for energy production.

This industrious province in also known as the third largest provincial economic base of the People’s Republic of China with a total $15.3 billion on agricultural produce export which placed it on top for 17 consecutive years in the country.

According to a representative from the Shandong Department of Public Reform, Xing Auxin, the Province is also a power house of industries with a turnover of 14.7 trillion Yuan, a development that placed it second in China, disclosing that their Gross Domestic Product (GDP) for 2015 reached 6.3 trillion Yuan equivalent to $1 trillion.

Shandong is also one of China’s main power house in terms of industries as it holds major companies such as the Shandong Iron and Steel Group (SISG) that largely focused on steel and electricity generation across the country.

It could be recalled that earlier 2016, the Shandong Iron and Steel Group (SISG), with their headquarter in Shandong province, recently acquired 100 percent ownership of the biggest iron ore deposits site in Africa (Tonkolili Ore) in the northern part of Sierra Leone.
This giant Chinese steel producing company started business in Sierra Leone in 2012 after purchasing 25% shares and investing $1.5 billion in the mines from African Minerals Limited (AML) that owns the remaining 75% shares.

Such investment allows SISG purchase two million tonnes a year during the first phase of production and increase to two million tonnes a year at discount rates of between 0% and 15%.

According to the Director General of Shandong Province Foreign Affairs Ministry, Li Yongsen, SISG Iron Ore project in Sierra Leone is one of the Province’s major projects in Africa considering the recent investment imputed into the project.

He maintained that such project is in the heart of the Chinese government which focuses on strengthening its economic ties with Sierra Leone and also intends to contribute in transforming the country’s economy by encouraging more Chinese investors to go and invest in Sierra Leone within the shortest possible time.

Upon a visit at the world’s seventh largest and also one of the largest port in China, Port of Qingdao, it was discovered that due to the amount of iron ore imported through this port to China, it is commonly known as the “iron ore supermarket.”

This massive port is divided into four major parts including Huangdao oil port area, Dongjiakou port area, Dagang port area and Qianwan port Area.

According to a senior official at the iron ore port area, Chin Lin, Qingdao port is equipped with the world’s largest 19, 000 TEU container terminal, 400, 000 DWT Iron Ore terminal, 450, 000 DWT crude oil terminal, 100, 000 DWT coal terminal and the largest bulk grain handling facility along the Yellow River basin.

He disclosed that the iron ore terminal at Qingdao port is one of the biggest in the world with a breadth and length of 420 meters and 21 meters beneath that can accommodate all the large vessels with 300,000 tonnes of iron ore, adding that they have been operating for about 20 years now.

Chin Li maintained that they have received 0.5 billion tonnes of ore and from 2012 to date they received 10 million tonnes of ore from Africa mainly from South Africa and Sierra Leone which makes up more than 10 percent of the total ore imported to China.

“We pay more attention on the ore imported from Africa which are of high quality and can help us provide good quality of steel for our numerous customer” he says, a reason according to him responsible for China focus to the Africa continent as it true and reliable friend.

It could be recalled that the Sierra Leone Ambassador to China, Alimamy P. Koroma, recently pleaded with the management of Shandong Iron and Steel Group (SISG) to start processing Iron Ore to finished products in Sierra Leone, which according to him will not only create employment but also contribute to the country’s economy.Iron ore export from Africa to China…

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