Sinosteel mine dismisses rumors of a closedown

Source: Xinhua  |   2008-12-13  |     NEWSPAPER EDITION

CHANNAR iron ore mine, Sinosteel's overseas joint venture project with Rio Tinto in Australia, is in constant operation, China's metal giant said yesterday, denying rumors the mine had been shut down following massive losses.

"All the company businesses, including our overseas projects are in good shape. There is no such thing as losing money," Sinosteel said.

According to the state-owned steel maker and trader, Channar cut production in late last month because of shrinking market demand. It has already resumed normal operation. But there were some media reports this week that the mine had been closed since November 19. This aroused concern it might affect Midwest, an Australian mining company. Sinosteel holds 98.5 percent of its shares.

"Midwest is running smoothly at present, and we have strong confidence in its long-term development," the Sinosteel statement said.

Sinosteel and Rio Tinto, the world's second-largest mining group, signed an agreement to jointly develop Channar back in 1987. The mine has yielded 10 million tons of iron ore a year for China since 1990.