OREANDA-NEWS. May 11, 2012. With the progress of the large-scale development in the western region and of aids to the construction work in Xinjiang, a number of domestic steelmakers have drawn up plans to set foot or expand capacity there.

This will translate into a fast increase in demand for iron ore. The release of information in late April by a source from Mongolia that the country had discovered 14 iron ore deposits has attracted scores of potential Chinese investors with strong interests in the relevant negotiations. The source said the total reserves amounted to 11 billion tons.

Steel output in Xinjiang would reach 13.60 million tons this year, 38 percent more than in 2011; and steel consumption would be approximately 12.60 million tons, up 25 percent. The region has proven iron ore reserves of up to 1.19 billion tons, but the lack of exploitation activities and beneficiation facilities hinders the effective use of the resources.