China’s Panzhihua Steel to Invest $2 Billion in Iron and Steel Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--China's Panzhihua Steel and Iron Corporation (PanSteel) will invest in a $2 billion Iron Steel Vanadium Titanium project in Xichang in the Sichuan Province. PanSteel (Panzhihua City, Sichuan Province) signed an agreement at the end of August with Liangshan Autonomous Prefecture of Sichuan Province to invest $2 billion in Xichang in the Liangshan Prefecture. Yu Zisu, general manager of PanSteel, said that the Iron Steel Vanadium Titanium project will last about three years and that PanSteel will spend more than $5 billion in minerals development.

According to PanSteel, the factory will be able to produce 4 million tons of iron, 3.5 million tons of steel and 200,000 tons of vanadium residue every year. PanSteel intended to build the factory in the Anning River Valley, about 20 kilometers from Xichang proper.

Chongqing Iron and Steel (Group) Company Limited (Chongqing City, Sichuan Province) may join PanSteel in the project.

Xichang is rich in various mineral deposits. China's second biggest iron ore deposit (after Anshan in the Liaoning Province) lies in the Panzhihua-Xichang region, accounting for 20% of China's total deposit. The region also has 10 billion tons of vinado titano magnetite, which contains 15.7 million tons of vanadium deposit (counted as vanadium pentoxide, accounting for 60% of China's total deposit and 11.6% of the world's total). The region also boasts 870 million tons of titanium deposit (counted as titanium dioxide, accounting for 90% of China's total deposit and more than 30% of the world's total).

Established in 1965, PanSteel now produces 7.2 million tons of iron, 7.8 million tons of steel, 7 million tons of rolled steel, 20,000 tons of vanadium products (counted as vanadium pentoxide) and 380,000 tons of titanium products.

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