CONTENTS

IRON ORE MANUAL 2016-2017

CONTENTS

INTERNATIONAL MARKET (PRICE NEGOTIATIONS) ...... 1 IIron Ore Price Goes Down Due to Excess Supply ...... 3 Steel Business Environment Remains Severe Due to China's Excess Production ...... 4 First Price Setters in Japanese and European Markets (1981 - 2009) ...... 5 Price Changes of Iron Ore in Japan and Europe (1987 - 2009) ...... 6 Particular Notes on Past Iron Ore Price Negotiations ...... 7 Price Changes of Iron Ore and Coking Coal ...... 13 China's Steel Price Index, Iron Ore and Ferrous Scrap Price ...... 16 Exports of Major Iron Ore Exporting Countries by Destination ...... 21 Imports of Major Iron Ore Importing Countries by Source ...... 32

INTERNATIONAL MARKET (STEELWORKS AND STEEL INDUSTRY) ...... 45 Nippon Steel & Sumitomo Metal Corporation (NSSMC) ...... 47 JFE Holdings, Inc...... 51 Kobe Steel (Kobelco)...... 55 Nisshin Steel Holdings Co., Ltd...... 57 Pretreatment Technologies of Japanese Integrated Steel Mills ...... 59 Course 50 (Hydrogen steelmaking) ...... 64 South Korean Steel Industry...... 65 Taiwanese Steel Industry ...... 71 Chinese Steel Industry ...... 75 Russian Steel Industry ...... 78 Indian Steel Industry ...... 80 North American Steel Industry ...... 88 Perfomance of 4 Major Steel Makers in Latin America for 2015...... 89 New Steelworks Projects in Vietnam ...... 91 ArcelorMittal ...... 92 Status of Other European Major Steel Companies ...... 95 World Ranking of Crude Steel Production ...... 96

INTERNATIONAL MARKET (RESOURCES) ...... 97 Raw Materials Prices: Sharp Rise To Cooling Growth...... 99 India's Increasing Iron Ore Exports Due to Steel Expansion...... 100 India's Movements Over Iron Ore Export Ban ...... 101 Iron Ore Resources in Africa ...... 105 Roy Hill Iron Ore Projects in Western (March 2012) ...... 112 Sojitz And Kobe Steel Proceed With Southdown Project ...... 113 Japanese Six Trading Companies Holding Iron Ore Resources Interests ...... 114 World's Four Major Resources Companies/2012 Financial Results ...... 116

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DRI AND PELLETS ...... 119 World Direct Reduced Iron Production in 2013 Renews Record for Four Years in a Row ...... 121 DRI Production by Region and Country ...... 123 Process-wise DRI Production ...... 124 DRI Operations in Latin America ...... 129 DRI Operations in North America...... 134 DRI Operations in East Asia ...... 141 DRI Operations in South-East Asia ...... 147 DRI Operations in India ...... 149 DRI Operations in Africa ...... 154 DRI Operations in the Middle-East ...... 155 DRI Operations in Russia ...... 158 Iron-Making Processes ...... 160 Pellet Production by Region ...... 161 Pellet Production by Major Supplier ...... 162 Pellet Plants by Region ...... 163

STATISTICAL DATA OF JAPAN AND THE WORLD ...... 167 Crude Steel Production & Ranking in Japan by Quarter and Year ...... 169 Operating Results by Four Japanese Major Steel Mills ...... 170 Imports of Iron Ore Into Japan During 2012-2015 ...... 171 Iron Ore Imports by China, Japan, S.Korea, Taiwan ...... 174 World Crude Steel Production in 2011 - 2015...... 175 Japan's Iron & Steel Production / Steel Exports and Imports ...... 176 World Crude Steel Production (Preliminary) 2008 - 2015 ...... 177 World Pig Iron Production (Preliminary): 2008 - 2015 ...... 180 World Iron Ore Production: 2008 - 2015 ...... 181 World Iron Ore Exports: 2008 - 2015 ...... 182 World Iron Ore Imports: 2008 - 2015 ...... 183

SEABORNE TRANSPORTATION AND PORTS...... 185 Improvement of Maritime Industry still halfway, but showing promising signs ...... 187 Capesize Spot Voyage Charter Rates and Iron Ore Imports to China ...... 188 Shipping market expected be more severe in 2016 ...... 191 COA's Secured by Chinese Steel Mills ...... 193 Backlog of VLOC's Exceeds 50 Worldwide...... 195 Valemax ...... 196 Mitsui and POSCO Start Bulk Cargo Terminal Operations ...... 202 WOZMAX ...... 203 Recent New Bulk Carriers...... 204

REGIONAL PARTICULARS ON CHINA ...... 205 China Accelerates Iron Ore Mine Development ...... 207 Gulliver's Oligopoly Coming in Sight ...... 208 Year-to-Year Crude Steel Production in China by Steel Mill ...... 211 China's Major Economic Indices ...... 217 China’s Major Economic Indices ...... 213

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REGIONAL PARTICULARS ON AUSTRALIA AND ...... 219 60.8% of Japan's Iron Ore Imports Comes from Australia ...... 221 Production and Shipments of Australian Iron Ore by Supplier ...... 222 Rio Tinto's Iron Ore Production ...... 225 Rio Tinto's Iron Ore Sales ...... 227 Rio Tinto to Achieve 360 Mtpa Run Rate ...... 229 Hamersley Iron ...... 230 Mineral Resources Held by Rio Tinto Group ...... 233 Ore Reserves Held by Rio Tinto Group ...... 234 Robe River Iron Associates (RRIA) ...... 235 Production and Sales of RRIA Iron Ore ...... 237 Beasley River Joint Venture ...... 239 Rio Tinto & Komatsu Take The Next Step In Mine Of The Future Programme ...... 242 BHP Billiton ...... 243 BHPB Consolidated Results For YEJ 2016 ...... 244 Total Production and Shipments of BHP Billiton's Western Australian Iron Ore ...... 246 Mount Newman Iron Ore ...... 249 BHP Billiton's Mineral Resources and Ore Reserves as of June 30,2015 ...... 255 Mount Gibson Iron ...... 256 Cliffs Natural Resources Pty Ltd, Australia - Asia Pacific Iron Ore ...... 257 Fortescue Metals Group ...... 258 Atlas Iron ...... 262 Arrium (former OneSteel) ...... 263 Grange Resources...... 265 Territory Resources ...... 266 Gindalbie Metals ...... 266 Taharoa Iron Sand (New Zealand) ...... 267 Australian Iron Ore Mining Companies ...... 269 Australia's Port Infrastructure Projects ...... 271 Australia's Iron Ore Exports by Destination ...... 272 Australia's Iron Ore Exports by Port ...... 273

REGIONAL PARTICULARS ON SOUTH AMERICA ...... 279 Vale - Itabira Iron Ore (Southern System) ...... 281 Vale-Owned Pelletizing Plants ...... 283 Vale's Long-Term Supply Contracts ...... 284 Contract tonnage by region ...... 285 Vale's Iron Ore Production and Reserves ...... 286 Vale Establish Integrated Logistics System ...... 288 Vale starts up S11D project ...... 290 Nibrasco Pellets ...... 292 Vale iron ore exports by destination ...... 294 Iron Ore ...... 298 Anglo American ...... 300 NAMISA ...... 300 Congonhas Minerios ...... 301 Other Entities Developing Iron Ore in Brazil ...... 302 Chilean Iron Ore: Compania Minera del Pacifico S. A. (CMP) ...... 304 Peruvian Iron Ore (Shougang Hierro ...... 308 Venezuelan Iron Ore (C. V. G. Ferrominera Orinoco)...... 309

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REGIONAL PARTICULARS ON INDIA ...... 311 Iron Ore-Related Organizations in the Indian Government...... 313 Transition of Iron Ore Exports to Japan ...... 314 Bailadila Iron Ore...... 315 Three Ore Brands Shipped Ex-Chennai Outer Harbor (COH) ...... 316 KIOCL ...... 317 NMDC ...... 318 Visakhapatnam port expansion project...... 320 EPL takes over Visakhapatnam port trust 's OHC...... 320 Vedanta...... 325

REGIONAL PARTICULARS ON SOUTH AFRICA, NORTH AMERICA AND EUROPE ...... 331 Kumba Iron Ore (South Africa) ...... 333 Assmang Iron Ore (South Africa) ...... 337 IOC (Canada) ...... 339 ArcelorMittal Mines Canada : Formerly QCM (Canada) ...... 343 Cliffs Natural Resources: Formerly Cleveland-Cliffs, Inc. (The U. S. A. ) ...... 344 LKAB (Sweden) ...... 347

APPENDICES ...... 351 Appendix 1. Australian JORC Code and Moves to International Common Code ...... 353 Appendix 2. Rough Summary of Iron Ore Processing ...... 357 Appendix 3. What is Drilling? ...... 358 Appendix 4. Generality, Units and Abbreviations ...... 360

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