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Iron Ore Manual 2017-2018
CONTENTSINTERNATIONAL MARKET (PRICE NEGOTIATIONS) ................................................. 1Futures Lead Iron Ore Market, Pellet Premium Prices Rise .............................................................. 3
China’s Excess Capacity Cuts Bring Good Influence on Global Iron&Steel Market ........................... 4
Particular Notes on Past Iron Ore Negotiations ................................................................................ 7
World Iron Ore Trade ..................................................................................................................... 16
Exports of Major Iron Ore Exporting Countries by Destination ........................................................ 22
Australia ................................................................................................................................. 22Brazil...................................................................................................................................... 24
India ....................................................................................................................................... 25Venezuela ............................................................................................................................... 26
Chile ....................................................................................................................................... 26
Peru ....................................................................................................................................... 26
Canada ................................................................................................................................... 27
U.S. ....................................................................................................................................... 28
Mexico ................................................................................................................................... 28
Ukraine .................................................................................................................................. 29
Kazakhstan ............................................................................................................................ 29
Sweden .................................................................................................................................. 30
New Zealand .......................................................................................................................... 30
S.Africa ................................................................................................................................. 31
Mauritania .............................................................................................................................. 32
Bahrain .................................................................................................................................. 32
Oman ..................................................................................................................................... 32
Russia .................................................................................................................................... 33
Malaysia ................................................................................................................................. 34
Indonesia ................................................................................................................................ 34
Imports of Major Iron Ore Importing Countries by Source .............................................................. 35
Japan ...................................................................................................................................... 35
S.Korea .................................................................................................................................. 35
China...................................................................................................................................... 36
Taiwan ................................................................................................................................... 37
Indonesia ................................................................................................................................ 38
Malaysia ................................................................................................................................. 38
India ....................................................................................................................................... 38
EU 28 Countries ..................................................................................................................... 39
France .................................................................................................................................... 40
Belgium .................................................................................................................................. 40
Netherlands ............................................................................................................................ 41
Italy ........................................................................................................................................ 41
Germany ................................................................................................................................ 42
Turkey .................................................................................................................................... 42UK ......................................................................................................................................... 43Finland.................................................................................................................................... 43
Spain ...................................................................................................................................... 44i

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Romania ................................................................................................................................. 44
U.S. ....................................................................................................................................... 45
Mexico ................................................................................................................................... 45
Argentina ............................................................................................................................... 45
Pakistan ................................................................................................................................. 46
Saudi Arabia ........................................................................................................................... 46
Bahrain .................................................................................................................................. 46
Oman ..................................................................................................................................... 46

INTERNATIONAL MARKET (STEELWORKS AND STEEL INDUSTRY) .................. 47
Nippon Steel & Sumitomo Metal Corporation (NSSMC) ................................................................. 49
JFE Holdings, Inc. .......................................................................................................................... 54
Kobe Steel Ltd (Kobelco) ............................................................................................................... 58
Nisshin Steel Co., Ltd. .................................................................................................................... 61
Pretreatment Technologies of Japanese Integrated Steel Mills ......................................................... 64
COURSE50 (Hydrogen Steelmaking) ............................................................................................. 69
South Korean Steel Industry ........................................................................................................... 70
POSCO .................................................................................................................................. 70
Hyundai Group ....................................................................................................................... 74
Taiwanese Steel Industry ................................................................................................................ 76
China Steel Corporation (CSC) ............................................................................................... 76
East Asia United Steel Corporation ......................................................................................... 78
Formosa Ha Tinh Steel ........................................................................................................... 79
Chinese Steel Industry .................................................................................................................... 80
Baosteel Group Co., Ltd and Baoshan Iron and Steel Co., Ltd ................................................ 81
Russian Steel Industry .................................................................................................................... 83
Outline of Russian Major Steelmaking Groups ......................................................................... 83
Indian Steel Industry ....................................................................................................................... 85
Indian Steel Companies’ Expansion Projects ........................................................................... 86
Steel Authority of India Ltd (SAIL)......................................................................................... 86
Rashtriya Ispat Nigam Limited (RINL) ................................................................................... 87
Tata Steel ............................................................................................................................... 86
National Mineral Development Corporation Limited (NMDC) ................................................. 86
Essar Steel ............................................................................................................................. 86
Jindal Group ........................................................................................................................... 86
JSW Steel ............................................................................................................................... 86
North American Steel Industry ....................................................................................................... 94
US Steel ................................................................................................................................. 94
AK Steel ................................................................................................................................ 94
Latin American Steel Industry......................................................................................................... 96
Usiminas ................................................................................................................................ 97
Gerdau ................................................................................................................................... 98
Ternium .................................................................................................................................. 99
CSN ....................................................................................................................................... 99
New Steelworks Projects in Vietnam ............................................................................................ 101
ArcelorMittal ................................................................................................................................ 102
Overview of European Major Steel Companies ............................................................................. 105ii

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INTERNATIONAL MARKET (RESOURCES & SEABORNE SHIPPING) ................ 109[Resources] ...................................................................................................................................111
Raw Materials Prices: Sharp Rise To Cooling Growth ....................................................................111
India Increases Iron Ore Imports Due to Steel Expansion; Mining Bans Lifted .............................. 112
India’s Movements over Iron Ore Export Ban............................................................................... 113
Iron Ore Resources in Africa ........................................................................................................ 118
Roy Hill Iron Ore Project in Western Australia (March 2012) ....................................................... 124
Sojitz And Kobe Steel Proceed With Southdown Project ............................................................... 125
Six Japanese Trading Companies Strive to Acquire Iron Ore Interests ........................................... 126[Seaborne Shipping] ...................................................................................................................... 133
Capesize Market Is On The Recovery Trend ................................................................................ 133
Strategic Alliance Forged with Jiangsu Shagang ............................................................................ 136

DRI AND PELLETS.......................................................................................................... 139
World’s DRI Production Volume in 2016 Totals 72.76 Million Tonnes ............................................ 141
World DRI Production and Shipments ........................................................................................... 142
World’s DRI Production by Process ............................................................................................. 143
Process-wise DRI Facilities and Locations ................................................................................... 145
DRI Operations in Latin America ................................................................................................. 149
DRI Operations in North America ................................................................................................ 154
DRI Operation in East Asia .......................................................................................................... 161
Malaysia....................................................................................................................................... 167
Indonesia ...................................................................................................................................... 168
India ............................................................................................................................................. 169
Bolivia .......................................................................................................................................... 172
DRI Operations in Africa .............................................................................................................. 174
DRI Operations in the Middle-East ............................................................................................... 175
DRI Operations in Russia ............................................................................................................. 178
DRI Operations in Australia .......................................................................................................... 179
Iron-Making Processes ................................................................................................................ 180
Pellet Production by Region .......................................................................................................... 181
Pellet Plants by Region ................................................................................................................. 183

STATISTICAL DATA OF JAPAN AND THE WORLD .................................................. 187
Crude Steel Production & Ranking in Japan by Quarter and Year ................................................. 189
Operating Results by Four Japanese Major Steel Mills .................................................................. 190Imports of Iron Ore Into Japan During 2014-2017 ........................................................................ 191
Japan’s Iron Ore (Non-Agglomated Iron Ore) Imports in 2017 ...................................................... 192
Japan Agglomerated Iron Ore Imports in 2017 .............................................................................. 193
Iron Ore Imports by Four East Asia Countries (China, Japan, S. Korea and Taiwan ) .................... 194
World Crude Steel Production in 2013-2017 .................................................................................. 195
Japan’s Iron & Steel Production / Steel Exports and Imports ......................................................... 196
World Crude Steel Production (Preliminary) (2010 - 2017) ........................................................... 197
World Crude Steel Production by Region (2010 - 2017) ................................................................. 199
Direct Reduced Iron (2010 - 2017) ............................................................................................... 199
World Pig Iron Production (Preliminary): 2010 - 2017 .................................................................... 200
World Iron Ore Production: 2009 - 2016 ........................................................................................ 201
World Iron Ore Exports: 2009 - 2016 ............................................................................................ 202iii

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World Iron Ore Imports: 2009 - 2016 ............................................................................................ 203
Japan’s Iron and Steel Production ................................................................................................. 204

REGIONAL PARTICULARS ON CHINA ........................................................................ 205
Chinese Companies’ Investment Activities in Resource Industry Near An End .............................. 207
Domestic Iron Ore Development Passes A Peak .......................................................................... 208
China’s Excess Production Capacity ............................................................................................. 209
Chinese Companies’ Investment in Ports and/or Port Terminal Companies .................................... 210Major Initiatives of Chinese Central and/or Regional Governmental Bodies ................................... 216

REGIONAL PARTICULARS ON AUSTRALIAAND NEW ZEALAND .......................... 223
About 59.6% of Japan’s Iron Ore Imports Come from Australia in CY2017 .................................. 225
Australian Leading Resources Companies’ Output, Shipments by Year.......................................... 226
Produzction and Shipments of Australian Iron Ore by Suppliers ..................................................... 227
Rio Tinto ....................................................................................................................................... 230
BHP............................................................................................................................................. 248
Mount Gibson Iron ....................................................................................................................... 261
Cleveland Cliffs Asia Pacific Iron Ore .......................................................................................... 262
Fortescue Metals Group ............................................................................................................... 263
Atlas Iron ..................................................................................................................................... 267
GFG Alliance ................................................................................................................................ 268
Arrium (former OneSteel) ............................................................................................................ 269
Grange Resources ........................................................................................................................ 271
Gindalbie Metals ........................................................................................................................... 273
Taharoa Iron Sand (New Zealand) ............................................................................................... 274
Pilbara Ports Authority ................................................................................................................. 277
Iron Ore Shipments from Port of Port Headland in 2017 Stand at 497 Mil Tons ............................. 278

REGIONAL PARTICULARS ON SOUTH AMERICA ................................................... 287
Vale.............................................................................................................................................. 289
Itabira Iron Ore (Southern System) ....................................................................................... 289
Carajás Iron Ore (Northern System) ..................................................................................... 289
Vale-Owned Pelletizing Plants .............................................................................................. 291
Vale’s Long-Term Supply Contracts ...................................................................................... 292
Vale’s Contract Tonnage by Region ...................................................................................... 293
Vale’s Iron Ore Production and Reserves ............................................................................. 294
Vale Envisages Expansion of Iron Ore Sales in Asia.............................................................. 295
Construction of New Ore Centers ........................................................................................ 295
Placement of Order for Twelve 400,000-DWT VLOC’s ....................................................... 295
Conclusion of Extra Long-Term Transportation contracts with Major Shipping Companies..... 295
Vale Starts Up S11D Project ................................................................................................. 296
CLN S11D Project ............................................................................................................... 296
Caue Itabiritos Project .......................................................................................................... 296
Vale’s Infrastructure Investment ........................................................................................... 297
Vale Develops World’s Largest Iron Ore Project, S11D (June, 2012)..................................... 297
Vale Opens Distribution Center And Pelletizing Plant in Oman (March, 2012) ....................... 297
Vale Began Transshipment In Subic Bay, The Philippines (February, 2012) ............................ 297
Vale Completes Sale of 19 VLOCs in Total........................................................................... 298

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Oman’s Iron Ore Trade Rapidly Increases ............................................................................ 298
Vale to Establish Integrated Logistics System ........................................................................ 299
Nibrasco Pellets ................................................................................................................... 300
Summary of Nibrasco (Nippo-Brazilian Pelletizing Joint Venture company) ........................... 300
Vale and Japanese Mills - Equal Partners .............................................................................. 300
Nibrasco Pellets Supply Contract .......................................................................................... 301
Japan - Vale Regular Annual Conference .............................................................................. 301
Vale Iron Ore Exports by Destination .................................................................................... 303
Samarco Iron Ore ........................................................................................................................ 307
Five-Year Contract with Kobe Steel...................................................................................... 307
Fundao Dam Failure ............................................................................................................. 308
Foundation Establishment Agreed for Restoration of Damaged Villages ................................ 308
Renova Foundation Launched ............................................................................................... 308
Anglo American ........................................................................................................................... 309
Minas Rio System (Stakeholders: Anglo American 100%) ..................................................... 309
Strategies ............................................................................................................................. 309
NAMISA ..................................................................................................................................... 309
CONGONHAS MINERIOS ........................................................................................................ 310
Other Entities Developing Iron Ore in Brazil ................................................................................. 311
USIMINAS .......................................................................................................................... 311
Essar Group ......................................................................................................................... 312
ArcelorMittal ........................................................................................................................ 312
ENRC .................................................................................................................................. 312
Chilean Iron Ore: Compañía Minera del Pacífico S.A. (CMP) ...................................................... 313
Peruvian Iron Ore (Shougang Hierro Perú) ................................................................................... 317
Venezuelan Iron Ore (C.V.G. Ferrominera Orinoco) ..................................................................... 318

REGIONAL PARTICULARS ON INDIA .......................................................................... 321
Iron Ore-Related Organizations in the Indian Government ............................................................. 323
Transition of Iron Ore Exports to Japan ........................................................................................ 324
Bailadila Iron Ore ......................................................................................................................... 325
Three Ore Brands Shipped Ex-Chennai Outer Harbor (COH) ...................................................... 326
KIOCL (Former "Kudremukh Iron Ore Company Limited") .......................................................... 327
Exploration and Development in Andhra Pradesh .................................................................. 327
Service Agreement in NMDC’s Beneficiation and Pelletizing Plant ....................................... 327
Operation of Coke Handling System ..................................................................................... 327
Pelletizing Plant at SAIL’s Bokaro Steel Plant ....................................................................... 327
Other Plans .......................................................................................................................... 327
NMDC ......................................................................................................................................... 328
Bailadila Iron Ore Mines ....................................................................................................... 328
Bacheli Complex .................................................................................................................. 328(Bailadila Iron Ore Deposits 10 & 11A/B) ............................................................................ 328
Kirandul Complex ................................................................................................................. 328(Bailadila Iron Ore Deposits 11C) ......................................................................................... 328
Sizing of Lump ...................................................................................................................... 328
Donimalai Iron Ore Deposit .................................................................................................. 328
Kumaraswamy Iron Deposit ................................................................................................. 328
NMDC’s Construction of Steel Plants ................................................................................... 329
Visakhapatnam Port Expansion Project ......................................................................................... 330
EPL Takes Over Visakhapatnam Port Trust’s OHC ...................................................................... 330v

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NMDC’s Current Progress of Projects ................................................................................. 331
Integrated Steel Plant at Nagarnar in Chhattisgarh ................................................................ 331
Deposit 11B of Bailadila Iron Ore Mine at Kirandul Complex in Chhattisgarh ........................ 331
Kumaraswamy Iron Ore Project in Karnataka ...................................................................... 331
Donimalai Pellet Plant in Karnataka ...................................................................................... 331
Screening Plant-III at Kirandul Complex in Chhattisgarh ....................................................... 331
Slurry Pipeline in Chhattisgarh .............................................................................................. 331
Particulars of Various Other Iron Ore Brands ............................................................................... 335
Chowgule Iron Ore ............................................................................................................... 335
Tudou Iron Ore ..................................................................................................................... 335
Dempo Iron Ore ................................................................................................................... 335
Dempo LPMC (Low Phosphorous Magnetite Concentrate) ................................................. 335
Salgaocar Iron Ore ............................................................................................................... 335
Smil / Timblo ......................................................................................................................... 336
Bandodkar Iron Ore ............................................................................................................. 336
Vedanta limited. (former Sesa Sterlite or Sesa Goa Iron Ore) ................................................ 336
Sesa Goa Iron Ore ................................................................................................................ 337
Vedanta Limited ................................................................................................................... 337
Navelim Iron Private Ltd. (A wholly-owned subsidiary of Sesa Goa)..................................... 339
Fomento Iron Ore ................................................................................................................. 339
Bandecar Iron Ore ............................................................................................................... 339

REGIONAL PARTICULARS ON SOUTH AFRICA, NORTH AMERICAAND EUROPE ............. 343
Kumba Iron Ore (South Africa) .................................................................................................... 345
Kumba Iron Ore’s Mining Operations ................................................................................... 346
Kumba Iron Ore’s Consolidated Profit in 2016 Largely Increases ......................................... 347
Kolomela Mine Officially Opened (June 22 2012) ................................................................. 349
SIOC and AMSA Agree on Iron Ore Supply (November 2013) ............................................. 349
Disputes on Sishen Mine Resolved (December 2013, October 2016) ..................................... 349
Assmang Iron Ore (South Africa) ................................................................................................. 350
Sumitomo Corp Stake-holding in Assmang Reaches About 17% ............................................ 350
Khumani Iron Ore Mine ....................................................................................................... 351
Iron Ore Resources and Reserves in Beeshoek Mine and Khumani Mine in 2016 ................. 351
Carol Lake Iron Ore (Canada) ..................................................................................................... 352
Gist of Technical Presentation on Carol Lake Iron Ore (May 28, 2002) ................................. 355
Increase of concentrate production capacity (March, September 2008) ................................. 355
Concentrate capacity expansion to be resumed (May 2010) .................................................. 355
ArcelorMittal Mines Canada : Former QCM (Canada) ................................................................. 356
Cleveland Cliffs: Former Cliffs Natural Resources (U.S.A.) ......................................................... 357
CLF Returns Company Name to Its Old Name “Cleveland Cliffs” (August 15, 2017) ........... 357
CLF’s Business Reconstructure ............................................................................................ 357
CLF’s Iron Ore Production and Sales ................................................................................... 358
CLF Cloeses Wabush Mines Permanently ............................................................................ 359
Champion Iron to Reconstruct Bloom Lake Iron Ore Mine ................................................... 359
North American Iron Ore Business Becomes Increasingly Severe ........................................ 359
Iron Ore Mines and Ports in Canada ............................................................................................. 360
Mexico’s Iron Ore Pellet Industry ................................................................................................. 361
LKAB (Sweden) ......................................................................................................................... 362
LKAB’s Financial Results .................................................................................................... 362
LKAB’s Iron Ore Production and Shipment .......................................................................... 363

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Infrastructure Expansion and Project Suspension .................................................................. 364
New Pelletizing Plants (May 2008) ....................................................................................... 364
SILA Project Completed (October 2009) .............................................................................. 364
KUJ1365 in Kiruna Opens (May 2013) ................................................................................. 364
LKAB Starts Narvik Port Expansion (February 2014) .......................................................... 364
LKAB to Develop New Mines after A 50-year Interval (February 2010) .............................. 365
Swedish CourtAllows Operation in Leveaniemi,LKAB’sAll 3 MinesApproved (April 2015)........................ 365
LKAB Announces Employee Cutbacks (June 2016) ............................................................. 365

APPENDICES ..................................................................................................................... 367
Appendix 1 Australian JORC Code and Moves to International Common Code .......................... 369
Appendix 2 Rough Summary of Iron Ore Processing .................................................................. 373
Appendix 3 What is Drilling? ..................................................................................................... 374
Apprendix 4 Generality, Units and Abbreviations ......................................................................... 376

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