A fairly large-scale iron mining industry has been established in China in the past half century. Apart from some abandoned mines, there are presently 40 national key mines and over 150 major locally administered medium- and small-scale State-owned mines in operation in addition to more than 350 mines operated by village and township enterprises and over 2,300 self-employed small mines. The present mining capacity has reached 258 million tons and the dressing and processing capacity is 299 million tons. Seventeen major mines of them have industrial reserves (category A+B+C) of 6.9 billion tons with net fixed assets of 19.3 billion yuan, 240000 employees, mining capacity of 110 million tons and iron concentrates production capacity of more than 40 million tons.

3.2.2.1 Production     

The present iron products mainly comprise crude and finished ores. The latter refers to lumps used for steel and iron smelting, rich ore powder and iron concentrates. The last two products can be used to make artificial rich ores (sinters or agglomerates).     

In 1997, 268.61 million tons of crude ores and 139.69 million tons of finished ores were produced, among which there were 1.84 million tons of lumps for steel-making production, 37.55 million tons of lumps for iron-making production, 6.17 million tons of rich ore powder, 94.13 million tons of concentrates and 164.8 million tons of artificial rich ores.     

In this year, the world's output of iron ores was 1,051.4 million tons. The major countries are Brazil (188 million tons), Australia (165 million tons), Russia (71.9 million tons), India (67 million tons), the US (63 million tons), Ukraine (48 million tons), Canada (37.3 million tons), and South Africa (33.2 million tons). China is the leading country in the world in terms of the output of crude ores, but the produced ores are very poor in grade (about 30%). In terms of the output of finished ores (iron content of 51%), China ranks third after Brazil and Australia.     

The production of iron ores of China has experienced a swift development. Table 3.2.3 lists the output of crude iron ores after 1949 in China, demonstrating that it took 48 years to increase the output from 590,000 tons (1949) to 268.612 million tons (1997) with an annual growth rate of 5 million tons. During this period, the output had been steadily increased except for one or two years. Especially in the 1990s, rapid progress was made in the production of iron ores. Crude ores was increased from 179.34 million tons in 1990 to 268.61 million tons, and finished ores from 86.12 million tons in 1990 to 139.69 million tons in 1997.

Opencut iron mines are predominant in China, whose output makes up 73.4% of the total mined iron ores. Among these opencut mines, the key mines have an output amounting to 85.6% of the total output of all key iron mines of the country. The major economic indices of the key opencut mines are as follows: the average iron content of mined ores is 27.6%; recovery percentage, 97%; dilution ratio, 4.39%; and overburden ratio, 2.7 t/t.      

The underground mined iron ores account for 26.5% of the total mined iron ore of the whole country. Among all underground mines, the key mines have an output amounting to 14.4% of the output of all the key mines in China. The major economic indices of the underground mines are an average iron content of 36.9%, recovery percentage of 76.2 and dilution ratio of 19.8%.

Because lean ores predominate, amounting to 97.48% of the total iron reserves of China, and a large portion of iron ores (1/3 of the total reserves) are associated or paragenic with other components, most of the ores have to be dressed before smelting. In 1997, 218.52 million tons of iron ores were dressed in the country, amounting to 81.35% of the total output, and 94.13 million tons of iron concentrates were produced. 101.36 million tons of iron

Table 3.2.3 Outputs of crude ores in China (¡Á106t)

Notes: Periods I, II, III, IV, V, VI, VII, VIII and IX denote the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th and 9th Five-Year Plan period, respectively; Period A: Economic Recovery period (1950?1952); Period B: Economic Regulation period (1962?1965).ores were dressed in the key dressing plants, amounting to 46.38% of the total dressed ores, and 43.52 million tons of iron concentrates were produced, amounting to 46.23 of the total. Table 3.2.4 gives the economic and technical indices of the key dressing plants of China.

Table 3.2.4 Economic and technical indices of key dressing plants in China (1996)

3.2.2.2 Distribution of Production     

Iron and steel enterprises in China were set up basically in areas of iron resources or in their neighboring areas. Table 3.2.5 lists 51 major iron and steel enterprises, which yield 85.61 million tons of pig iron annually, making up 73.87% of China's total. Fig.3.2.2 illustrates the distribution of the 51 iron and steel enterprises and their bases of crude iron ores.

(1) Base of iron ores in the middle and lower reaches of the yangtze river     

This base involves iron ironworks in the Ningwu-Luzong area, Hangzhou, Shaoxing and eastern Hubei Province. The major enterprises include Shanghai No.1 Iron and Steel Group Co. Ltd., Baoshan Iron and Steel Group Company, Shanghai Meishan Group Co. Ltd., Hangzhou Iron and Steel Group Company, Jiangsu Sugang Group Company, Nanjing Iron and Steel Group Company, Ma'anshan Iron and Steel Co. Ltd., Hefei Iron and Steel Company, Wuhan Iron and Steel Group Company and Hubei Echeng Iron and Steel Plant. The total production of the above 10 enterprises was 23.37 million tons in 1996, accounting for 20.17% of the total pig iron output in the country. About 70 million tons of iron ores are needed annually, exclusive of imported ores specially for the Baoshan Iron and Steel Group Company, but the mining capacity of iron ores in this base was only 17.3 million tons in 1996, which fell short of the demand.

(2) Anshan-Benxi and Fushun base     

There are 4 enterprises in this area: the Anshan Iron and Steel Group Company, Benxi Iron and Steel Company, Beitai General Iron and Steel Factory and Fushun Iron and Steel Company. The total production of these enterprises in 1996 was 13.32 million tons, which needed 46 million tons of iron ores. The mining capacity of this base was 41 million tons in 1996. This figure in combination with the extended mining capacity of 9 million in the Qidashan Mine and the capacity of the newly built Benxi Ma'erling Iron Mine can basically meet the demand of this area.

(3) East Hebei-Beijing base     

The major iron and steel enterprises in this area are the Capital Iron and Steel Group Company in Beijing and Tangshan Iron and Steel Group Company. Their iron-producing capacity was 10.36 million tons in 1996, which needed 35 million tons of iron ores. In 1996, the mining capacity of this base was 21 million. This capacity could not satisfy the demand of these two enterprises even if the local State-owned and various middle- and small-scale mines in this base are taken into account.      

(4) Baotou-Bayan Obo iron ore district  
  
This is a supply base of iron ores for the Baotou Iron and Steel Company, which had an iron-producing capacity of 4.32 million tons in 1996. The mining capacity of this district was 10.93 million tons in 1996, which can meet the demand of the Baotou Company if the western Bayan Obo ore district, which is a large-scale iron ore area, and some local mines are included.     

(5) Wutai-Lanxian iron ore district     

This is a supply base of iron ores for the Taiyuan Iron and Steel Group Company. In 1996, the mining capacity of this district was 3.7 million tons. The Jianshan Mine in Loufan, Shanxi, just went in operation with an annual output of 4 million tons. The whole mining capacity can satisfy the demand for producing 1.99 million tons of pig iron annually.     

(6) Iron ore district in central Shandong Province     

In this area there are the Jinan General Iron and Steel Company, Laiwu General Iron and Steel Factory and Qingdao Iron and Steel Group Company. The total iron-producing capacity was 4.08 million tons in 1996. The present mining capacity falls short of the demand.     

(7) Xuanhua-Chicheng iron ore district in Hebei Province     

This is a base of crude iron ores for the Xuanhua Iron and Steel Factory. In 1996 the annual production of pig iron was 1.5 million tons. This area suffers severe shortages of iron resources and production of iron ores.

(8) Taihangshan iron ore district, involving the Handan-Xingtai and Laiyuan areas in Hebei Province, southeastern Shanxi Province and the Anyang area in Henan Province     

In this area there are the Handan Iron and Steel Co. Ltd., Xingtai Iron and Steel Company, Shijiazhuang Iron and Steel Factory, Changzhi Iron and Steel Group Company, Tianjin Ironworks (Shexian) and Anyang Iron and Steel Co. Ltd. The production capacity of the above 6 enterprises is 6.98 million tons of iron. The iron resources of this district are not sufficient for the production.

(9) Jingtieshan iron ore district in Jiuquan     

This is an iron base for the Jiuquan Iron and Steel Factory, which had an iron-producing capacity of only 1.2 million of tons in 1996. The mining capacity of this area was 5.1 million tons in 1996. In addition, the large-sized Heigou iron ore district can supply a certain amount of iron ores. On the whole, the iron resources can satisfy the demand for the iron smelting of this area.     

(10) Tonghua iron ore district in Liaoning Province     

This is a supply base of crude iron ores for the Tonghua Iron and Steel Company. The mining capacity of this area is 2.45 million tons, which is short of the demand for producing 1.27 million tons of pig iron.     

(11) Xinyu-Pingxiang-Ji'an-Yongxin ore district in Jiangxi Province     

In this area there are the Nanchang Iron and Steel Co. Ltd., Xinyu Iron and Steel Co. Ltd., and Pingxiang Iron and Steel Factory. The total iron-producing capacity was 1.66 million tons in 1966. The explored resources are not enough for the iron production.     

(12) Eastern Hunan-Tianhu iron ore district     

There are the Xiangtan Iron and Steel Company and Lianyuan Iron and Steel Co. Ltd. in this area. The production was 2.51 million tons in 1966 and the iron resources cannot meet the iron production. The iron enterprises have to purchase iron ores from outside the area.     

Besides the above-mentioned areas, there are some iron and steel enterprises in other areas, but they are rather small in size. Their output of pig iron was less than one million tons in 1996. The following 12 areas can be mentioned: Central Yunnan iron ore district (Kunming General Iron and Steel Company, production capacity: 800,000 tons), South Fujian iron ore district (Sanming Iron and Steel Factory, 600,000 tons), Shuicheng iron ore district (Shuicheng Iron and Steel Group Company, 990,000 tons), Luzhaitun iron ore district (Liuzhou Iron and Steel Group Company, 900,000 tons), Chengde iron ore district (Chengde Iron and Steeel Group Company, 750,000 tons), Fushan-Xiangfen iron ore district in Linfen (Linfen Iron and Steel Company, 470,000 tons), Baoguo iron ore district in Beipiao (Lingyuan Iron and Steel Company, 640,000 tons), Shuangyashan-Huanan iron ore district (Xilin Iron and Steel Group Company, 160,000 tons), Hami iron ore district (Xinjiang "8.1" General Iron and Steel Factory, 920,000 tons), L¨¹eyang iron ore district (Lueyang Iron and Steel Factory, 180,000 tons), Dabaoshan iron ore district in Qujiang (Shaogang Group Company, 780,000 tons), and Huaiji-Zijin-Boluo iron ore district in Guangdong (Guangzhou Iron and Steel Group Company, 460,000 tons). The iron supply of each of these bases is not sufficient for iron smelting of its own district except the Chengde and Dabaoshan districts.