On March 26, the launch ceremony for the development of the Hongge Nan Mine was held in Yanbian County, Panzhihua City, Sichuan Province, marking the start of an efficient, comprehensive development of the mine’s entire industrial chain. The development of the Hongge Nan Mine is a microcosm of China’s active promotion of domestic iron ore resource development in recent years.
　　In recent years, China has stepped up its efforts to develop domestic iron ore resources, and a number of large-scale iron ore projects—including the Xian’anshan Iron Ore Mine in Liaoning—have entered the development phase one after another. Driven by relevant authorities, many more iron ore projects are set to come online soon, accelerating the pace of domestic iron ore resource development. According to data from the National Bureau of Statistics, from January to February, domestic mines produced 175.86 million tons of raw iron ore, an increase of 22.14 million tons, or 14.4%, compared to the same period last year. This represents an increase of 20.10 million tons over 2022, or 12.9%, with both the absolute increase and the growth rate reaching record highs since the same period in 2018. The capacity utilization rate stood at 72.4%, up 7.4 percentage points year-on-year, reflecting a substantial rise in iron ore production.
　　The new round of strategic actions for breakthroughs in mineral exploration brings opportunities for the development of domestic iron ore resources.
　　As early as 2021, the Ministry of Natural Resources had already designated iron ore as a key mineral species for domestic exploration under the strategic minerals initiative. On March 14 of this year, the Ministry of Natural Resources convened a meeting on mineral resource management and the promotion of the new round of strategic actions for breakthroughs in mineral exploration. The meeting pointed out that it is essential to improve the mineral resource management system and implement the new round of strategic actions for breakthroughs in mineral exploration. Mineral exploration efforts are crucial to the overall national energy and resource security, and thus must be given the highest priority and pursued with full commitment. The meeting emphasized that in 2024, we must continue to refine mineral resource management, further deepen the new round of strategic actions for breakthroughs in mineral exploration, and spare no effort to find large, high-quality, and urgently needed mineral deposits—thus building momentum and empowering the development of new-quality productive forces and providing energy and resource guarantees for advancing Chinese-style modernization. First, we must continuously deepen reforms in mineral resource management and establish long-term mechanisms for fostering a thriving mining market; second, we must keep deepening the new round of strategic actions for breakthroughs in mineral exploration, striving to fully achieve the goals and tasks set forth in the 14th Five-Year Plan; third, we must comprehensively promote green exploration and green mine construction, using high-level protection to support high-quality development; fourth, we must vigorously strengthen scientific and technological innovation and talent cultivation, nurturing new-quality productive forces in the mining sector; fifth, we must proactively assume responsibilities and enhance overall coordination to ensure the effective implementation of all key tasks. As a strategically important resource with a high degree of dependence, China’s capacity to secure its iron ore resources will undoubtedly be enhanced through the new round of strategic actions for breakthroughs in mineral exploration.
　　According to the “2023 China Natural Resources Bulletin” released by the Ministry of Natural Resources at the end of February (hereinafter referred to as the “Bulletin”), in 2022, nearly 40% of China’s mineral reserves increased. Among them, iron ore reserves reached 16.25 billion tons, an increase of 130 million tons year-on-year. The “Bulletin” highlighted that new progress has been made in the exploration of high-grade iron ore deposits in the Qihe-Yucheng area of Shandong Province, where nearly 100 million tons of high-grade iron ore resources have already been discovered.
　　According to statistical data released by the China Metallurgical Mining Enterprises Association, from January to February, domestic mines produced 45.736 million tons of iron concentrate, an increase of 1.24 million tons, or 2.8%, compared to the same period last year. The growth rate rose by 2.2 percentage points from the previous year, marking the highest level for the same period since 2018. The capacity utilization rate reached 61.8%, up 6.9 percentage points from the same period last year, indicating a significant increase in iron concentrate production.
　　From the perspective of fixed-asset investment, from January to February, the nationwide cumulative growth in fixed-asset investment in the mining industry reached 14.4%. Among them, the investment in the ferrous metal mining and beneficiation sector rose by 39.6% cumulatively, ranking second highest among all mining sectors—a year-on-year increase of 30.8 percentage points. Nationwide private fixed-asset investment in the mining industry grew by 14.8% cumulatively, with private investment in the ferrous metal mining and beneficiation sector increasing by 14%. This growth rate has shifted from a decline last year to an increase, representing a rise of 14.2 percentage points. It is evident that, at the start of the year, the willingness to invest in iron ore has significantly strengthened compared to the same period last year.
　　Several iron ore projects across China are currently in full swing.
　　The Hongge Nan Mine is China’s largest deposit of vanadium-titanium magnetite, boasting the greatest variety of coexisting elements and the highest potential resource value. The development of the Hongge Nan Mine will effectively reduce China’s reliance on foreign iron ore resources and strongly ensure the supply of strategic vanadium-titanium resources. According to reports, the Hongge mining area is divided into two sections—north and south—and the northern section has already been developed. In addition to being rich in metals such as iron, vanadium, and titanium, the Hongge Nan Mine also hosts coexisting metals including chromium, nickel, and cobalt. It is one of the few super-large multi-element symbiotic deposits in China, possessing significant strategic value for comprehensive resource utilization. The mine comprises three ore sections—Masonglin, Tongshan, and Lukou—with a mining rights area of 5.7823 square kilometers and total proven reserves amounting to 3.256 billion tons. The mine will be developed on a large scale using a “surface plus underground” approach, with high standards set for both its expansion and the construction of a green mine. By 2030, the plan is to achieve an annual processing capacity of 40 million tons of iron ore, ensuring a stable and continuous supply of 8.9 million tons per year of vanadium-titanium iron concentrate, 2.83 million tons per year of titanium concentrate, and 20,000 tons per year of sulfur-cobalt concentrate, thereby establishing a robust primary resource security capability.
　　In addition to the Honggenan Mine, several iron ore projects across the country are currently under vigorous development.
　　According to publicly available information, as of early April, the total length of tunneling for the eight shafts in the Xian'anshan Iron Ore Project located in Liaoning had reached 1,245 meters, exceeding the scheduled progress by 16%. The Xian'anshan Iron Ore Project is a landmark initiative that deepens central-local cooperation and ushers in a new breakthrough in comprehensive revitalization. Officially breaking ground on November 16, 2022, the project, once fully operational, will add an annual iron ore production capacity of 30 million tons and an additional output of 10.41 million tons of iron concentrate—accounting for roughly 2% of future domestic demand for iron concentrate. The project’s total investment amounts to 22.9 billion yuan. Upon completion and commissioning, it will become the world’s largest underground iron ore mine, featuring cutting-edge technology, environmental sustainability, intelligence, zero waste, and minimal disturbance.
　　Similarly, the construction of the Sishanling Iron Ore Mine in Benxi, Liaoning Province, is also progressing smoothly and has now fully entered the trial-production phase. The total investment in the Sishanling Iron Ore Mine project amounts to 5.813 billion yuan, with projected annual sales revenue of 3.77 billion yuan. The mine’s overall planned annual production capacity is 30 million tons, eventually reaching an annual output of over 10 million tons of iron concentrate. In 2023, investments totaling 800 million yuan were completed; to date, cumulative investments have reached 4 billion yuan. This year, the project plans to invest between 600 million and 800 million yuan. The first-phase mining and beneficiation project, with a capacity of 15 million tons, is being constructed in two stages: the first stage, covering 7.5 million tons, has already seen all four vertical shafts completed, and upon reaching full production, it will yield 2.56 million tons of iron concentrate annually. The second stage, covering the remaining 7.5 million tons, will add three more vertical shafts, all of which are currently under construction. With reserves totaling 2.484 billion tons, the Sishanling Iron Ore Mine project represents the largest single iron ore deposit currently explored and registered in China, as well as Asia’s deepest and one of its largest ultra-large-scale iron ore mines.
　　The Chen Taigou iron ore project, which broke ground in June 2023, is a super-large sedimentary-metamorphic iron deposit with substantial reserves and excellent resource endowment. It holds proven and probable reserves totaling 1.216 billion tons, and is designed for an annual production capacity of 11 million tons, yielding 4.7 million tons of iron concentrate per year. According to reports, the project is also being accelerated, with shaft and tunnel construction exceeding one kilometer in a single month in March.
　　In addition, it is understood that this year a batch of new iron ore projects will also be ready to commence construction, while a number of iron ore projects already under way are entering the production phase.
　　Promote policy implementation to improve the operating environment for mines.
　　Although significant progress has been made in the development and utilization of domestically produced iron ore, it still faces certain challenges and issues.
　　During this year’s Two Sessions, Zhao Mingge, Party Secretary and Chairman of Shougang Group Co., Ltd., pointed out that currently, the main taxes and fees levied on domestic iron ore mines include value-added tax, urban construction tax, local education surcharge, mineral resource tax, water resource tax, environmental protection tax, property tax, urban land use tax, stamp duty, vehicle and vessel tax, enterprise income tax, deed tax, employment security fund for persons with disabilities, and soil and water conservation compensation fees. “In recent years, the proportion of taxes and fees borne by each ton of iron concentrate (excluding value-added tax) has been around 22.12%, which is higher than the tax burden faced by foreign iron ore mines. For instance, the tax burden at Australia’s卡拉拉 mine stands at 4.5%, while in Brazil it’s roughly 10%. In some states in the U.S. and Canada, the tax burden for iron ore enterprises is about 6.5%.” To address this issue, he put forward the following recommendations: First, further deepen the reform of the value-added tax system to reduce the VAT burden on iron ore enterprises; second, lower the mineral resource tax to enhance the competitiveness of domestic iron ore enterprises; third, refine the scope of resource tax collection to encourage iron ore enterprises to improve their level of resource reuse. Zhao Mingge suggested exempting from resource tax those mineral products extracted from low-grade ores, waste rock, tailings, and other such materials, thereby boosting enterprises’ motivation to recycle resources and preventing resource wastage.
　　Moreover, in genuinely improving the operating environment for iron ore mines, local governments also need to adopt targeted measures and take meaningful action. We must firmly put an end to “one-size-fits-all” approaches, enforce laws scientifically and precisely, and avoid practices such as “immediate closure of all mines,” “shutting down first and deciding later,” or “punishing the entire family for one person’s mistake.” Instead, we should promote safety and environmental rectifications in a scientific and prudent manner, and help iron ore enterprises that have met the relevant rectification requirements to resume production and operations as soon as possible.