Shandong China found a big iron ore deposit

October 26 MetalBiz--Shandong Geology and Minerals Bureau announced recently that a big iron ore deposit was found in Liaoning Shandong province, which resource can reach 5-8bln tons. The ore is underground of Yandian, with the quality of 26-31.7%.

Laigang spent much funds in the exploration, therefore, according to the contract, the company has a privilege to purchase the iron ore from this deposit.

However, an official from Laigang pointed out that the ore is 1 kilometer below the ground, so the exploration cost will be very high. He said that in view of low quality as well as high cost for exploration, whether Laigang to participate in exploration is a doubt now.

A trader from Qingdao unveiled that when the negotiation of 2009 was in deadlock in several previous months, an iron ore deposit with 3bln tons was also announced to be found in Liaoning province.

The aforesaid trader believed the news brought little positive effect to the market.