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China's plan to break foreign iron ore dependence -- Mine more at home

Creation of China Mineral Resources Group felt from Simandou to Sydney

China intends to assert its market power to put downward pressure on the price of steel it mostly buys from BHP and Fortescue Metals Group in Australia as well as Anglo-Australian Rio Tinto and Brazil's Vale.   © Reuters

The creation of China's new state-owned iron ore giant -- built to consolidate the nation's mining investments and coordinate purchases of the key steelmaking input -- is being felt everywhere from Simandou to Sydney.

The idea is that China Mineral Resources Group, founded on July 19 with registered capital of 20 billion yuan ($3 billion), will centralize purchasing for state-owned steel-makers and traders to create a unified front in negotiations with foreign suppliers. It will also house overseas mining assets.

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