From January to July, Baotou Steel produced 2.60 million tons of iron ore concentrates and purchased 2.43 million tons of processing concentrates, meeting its demand for blast furnace operations.

    The mill invested 50 million yuan in Inner Mongolia Huanggang Mining, a controlling subsidiary of Baotou Steel, to increase its concentrates output to 800,000 tons per year from more than 200,000 tons in 2003. Iron ore exploration work is also progressing in Bayannaoer, Wulanchabu, Xilinhaote, Chifeng and Hulunbeier.

    According to a guideline from the Inner Mongolia Autonomous Region Government, Baotou Steel's consumption of feedstock purchased from the region should account for 60 percent of what it needs in total.