China Association of Steel Producers and major steel producers called for increased production of iron ore domestically, as well as increased investment in overseas exploration to secure supplies. Chairman of the China Iron and Steel Industry Association Mr. He Wenbo recommended at the China People’s Political Consultative Conference in Beijing that China should set a national strategic goal to maintain domestic iron ore production at more than 20% of total demand. He proposed that the proceeds from the value added tax levied on imports of iron ore be funneled into a national iron ore development support fund to boost investment in inland mines. He also suggested that metallurgical companies investing in new mines or expanding production in existing deposits should be exempt from income tax.
He added: “We must continue to actively promote joint investment and cooperation with major miners, with a focus on undeveloped resources in Africa and Canada.”
The CISA chairman also called for increased collection and use of scrap steel, a cleaner alternative to iron ore in steel production.
He Wenbo said the parties concerned are working on a national standard for steel scrap that will allow the material to enter China as a resource instead of solid waste.