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, in Western Australia’s Pilbara region, and has exercised the option to acquire an additional one billion tonnes. Sino Iron is the largest magnetite mining and processing operation in Australia, accounting for more than 60% of exports of magnetite product. It has a mine life of more than 25 years.
In 2017, Sino Iron achieved significant milestones, including record production levels. During the calendar year, just under 17 million wet metric tonnes of premium magnetite concentrate were delivered to CITIC’s special steel plants and other steel mills in China. Sino Iron is now the largest source of concentrate imports for China.
Operation of the Cape Preston (Sino Iron) Aerodrome commenced during the year. Built on time and within budget, this facility makes direct flights to the mine site possible, reducing travel time for staff and improving productivity and overall safety. Other initiatives included the introduction of real-time tracking and data analysis of Sino Iron’s mining and light vehicle fleet.
In the year ahead, our objectives include increasing production, maximising operational efficiencies and lowering operating costs, to place Sino Iron on a financially sustainable long-term footing.
In 2017, the Las Bambas copper mine project in Peru, in which CITIC Metal Group holds a 15% interest, produced copper concentrates containing 453,700 metric tonnes of copper, in line with its production budget.
Through this partnership, CITIC Metal Group has also secured distribution rights on 26.25% of the copper concentrates extracted from the site. In 2017, a total of 350,000 metric tonnes of copper concentrates were distributed through CITIC Metal Group.
CITIC Metal Group holds a small indirect stake in Brazilian miner CBMM, which produces about 80% of the world’s ferroniobium. Through their partnership, CITIC Metal Group holds exclusive distribution rights on this resource in China.
Ferroniobium is used in the production of high strength low alloy steel. CITIC Metal Group primarily serves the medium to large market for this alloying agent.
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 Gabon, West Africa.
CITIC Metal Group and CITIC Resources trade commodities. Major products include iron ore, ferroniobium, copper, aluminium, coal, platinum and steel.