Xinxing Pipes Agrees to Build Iron-Ore Concentrate Processing Industry Park in Hubei Province

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Researched by Industrial Info Resources (Sugar Land, Texas)--Xinxing Pipes Group Company Limited (Beijing), the parent company of Xinxing Ductile Iron Pipes Company Limited (Wuan, Hebei) (SZ:000778), recently signed the strategic cooperation agreement with the government of the Enshi prefecture for the development of iron-ore mines and associated processing plants in the Hubei province. Guo Shijin, the executive vice president of Xinxing Pipes Group, and Zhang Zhongkai, the vice governor of the Enshi prefecture, signed the agreement on behalf of the parties.

According to the agreement, Xinxing Pipes Group will invest $740 million to build a 5 million-metric-ton iron-ore concentrate-processing industry park to process phosphorus hematite ore in Shuibuya Town, Enshi. Xinxing Pipes Group expects to complete the experimental work and related approval procedures by the end of this year, and to complete the project in three years. Upon completion, the project is expected to have an annual income of more than $1.5 billion, and could create 4,000 jobs for local residents.

The signing of the agreement is an important step in performing its strategic cooperation agreement with the government of Hubei, which was signed on May 8 this year. "This means that Xinxing Pipes Group's development in Hubei Province has entered into a new stage," said Liu Mingzhong, the chairman of Xinxing Pipes. Xinxing Pipes has established a joint experiment base on low-carbon emission and energy conservation with Beijing Shenwu Group Company Limited (Beijing), and has developed a direct-reduction iron-making technology based on a heat accumulation-type rotary hearth furnace, which could solve the technical issues in processing hematite ore with high phosphorus content.

Enshi is a prefecture rich in mineral resources. It has one of the four large iron-ore mines in China, with a proven reserve of 1.3 billion metric tons, but most are of hematite ore, with high phosphorus content. Xinxing Pipes Group is a large state-owned enterprise directly under the central government of China, with a total staff of about 80,000.

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