CITIC Pacific in HK$35.74 bln Australian project
CITIC Pacific Ltd<267>, a listed unit of China’s state-owned conglomerate CITIC Group, Monday announced its plan of injecting HK$ 35.74 billion into Sino Iron Project in Australia, according to Chairman Larry Yung Chi-kun.
Based in Western Australia’s Pilbara region, the project is expected to produce 27.6 million metric tons of iron ore in 2009, with iron pellets and concentrates exported to steel mills in China. Larry added that the project includes options for expansion that could increase production to more than 70 million tons a year.
The construction work is due to start next year, which includes a pellet plant, a power station and a desalination plant. Currently, the company is contacting the local government to win approval for the project.
Confronted with rising demand for raw materials in China, the move is seen as a strategic investment as it can help the company maintain sufficient supplies of raw materials to Chinese steel mills.
CITIC Pacific is principally engaged in the businesses of steel manufacturing and iron ore mining. Its Hong Kong shares closed at HK$40.75 yesterday, and traded at HK$ 40.45 as of 11am Hong Kong Time today.
Tags: investment