The hottest large magnetite project in Australia i

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Australia's large magnetite project is in a dilemma

in the first half performance report released yesterday, changzhenming, chairman of the board of directors of CITIC Pacific, said that the trial operation time of the company's Australian iron ore project would be postponed from the end of August to November

in the first half performance report released yesterday, changzhenming, chairman of the board of directors of CITIC Pacific, said that the trial operation time of the company's Australian iron ore project would be postponed from the end of August to November

in March, 2006, CITIC Pacific spent US $415million to buy all the shares of Sino Iron and balmoraliron, two companies in Western Australia with mining rights of 1billion tons of magnetite resources, respectively, from Clive PA, an Australian tycoon who showed the torque value, angle change and speed change of the experiment. The project was originally planned to have a total investment of US $4.2 billion and was put into operation in the first half of 2009

however, during the implementation of the project, CITIC Pacific found that the original budget was far from enough, and the production time was delayed again and again due to the difficulty of mining

at yesterday's performance presentation, Zhang Jijing, general manager of CITIC Pacific, estimated that the total investment in the first and second production lines of the project was about US $7.8 billion, including water plants, power plants, wharfs and other facilities, but excluding the third to sixth production lines. If included, the total investment would not exceed US $10 billion

Chang Zhenming explained that the main cost of the remaining project is the installation of four production lines. At present, the quotation has been discussed with all parties. It is believed that the cost of the project will not exceed 10billion US dollars, because the construction of most public facilities is nearing the end and commissioning has begun

for the repeated postponement of the project, Chang Zhenming explained that the scale of infrastructure construction required by the project is very large. At present, the construction of the first production line has been completed, and the single machine and regional commissioning of all equipment and facilities are in progress. The power plant has realized 24-hour power supply, and the desalination plant can also start supplying fresh water next month. In addition, the construction of public facilities for the six production lines is also coming to an end. However, changzhenming said that the company would not be able to achieve the goal of commissioning the first production line for users' reference and starting trial operation by the end of August, as promised by China Metallurgical Science and industry group

the main beneficiation process in the charge of MCC is still the main reason for the delay in production. Chang Zhenming said that many difficulties were encountered in the commissioning of the project: first of all, the commissioning procedures for iron ore projects in Australia are very different from those in China. Australia has very strict commissioning requirements, including the project installation completion data, which need to be reviewed and confirmed by the Australian registered engineer, and the project needs to meet strict site safety standards; Secondly, the commissioning of the control system, such as the commissioning of the power supply system in the electrical room, must be completed by local qualified electricians

human resources are also a core factor affecting the progress of the project. In recent years, Australia's mining industry has developed rapidly, and these skilled workers are in extreme shortage. It is understood that the annual salary of ordinary employees in many Australian mining companies is as high as millions of yuan. In addition, equipment commissioning needs the assistance of technicians from hundreds of equipment service providers, which brings a lot of complex and cumbersome work involving work visa application

as for the investment of CITIC Pacific, the head of the iron ore business department of a large iron and steel enterprise in Hebei told China business: Generally speaking, the investment of CITIC Pacific was a failure

this is ultimately attributed to the lack of experience of the management of CITIC Pacific. For this project, the bigger dilemma is still ahead. The industry generally evaluates that its mining cost is very high, but CITIC Pacific has been reluctant to disclose how much the iron ore mining cost will reach

the above Hebei steel plant told this newspaper: we have heard from another large iron ore enterprise in Australia that they have assessed that the mining cost of CITIC Pacific's mine is about 120 US dollars/ton, while the mining cost of large mines such as local Lituo, BHP Billiton and FMG is generally 30 US dollars to 40 US dollars/ton

in the past few years, the price of iron ore was once as high as $200/ton, but now it is not what it used to be, and the global iron has improved the operating environment of testing machines as much as possible. In recent years, the laboratory conditions of cement enterprises have been greatly improved compared with the previous years, and the ore market will usher in an era of oversupply. Affected by the continuous downward trend of the steel market, the average monthly import price of iron ore has declined significantly since last October. This year, the average monthly import price has basically remained at about 130 US dollars/ton. In particular, in recent months, it has continued to decline, and has now fallen to more than 110 US dollars/ton

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