Central China Goldfields

Companhia Vale DO Ri China tightens licensing requirements for iron ore importers

BEIJING (XFN-ASIA) - The 2007 requirements for iron ore import licenses have
been tightened up with higher entry thresholds, according to the China Iron &
Steel Association (CISA) and the China Chamber of Commerce of Metals, Minerals &
Chemicals Importers & Exporters (CCCMC).
Steelmakers or trading companies applying for licenses must have a
registered capital of over 20 mln yuan, compared with 10 mln in the previous
version of the requirements, the associations said at a joint media briefing.
Applicants should also have imported more than 700,000 tons of iron ore in
2005, against the previous requirement of 300,000 tons, the associations said.
Other requirements include limits on pollution, emissions and energy
consumption levels at steel production facilities, they said.
China began a system of automatic import licensing for iron ore imports in
March, 2005, in order to curb speculative trading in iron ore and prevent prices
of the mineral from rising too high.
In the first 11 months, average prices of imported iron ore fell about five
pct year-on-year to 63.67 usd per ton on spot market, CCCMC chairman Chen Haoran
said at the media briefing.
Currently there are 118 steelmakers and trading firms that are licensed for
iron ore imports. "The number will surely decrease if reviewed under the new
requirements," said Chen.
All iron ore importers are required to submit their applications to the CISA
and CCCMC for review by Jany 12.
China is expected to import 355 mln tons of iron ore in 2007, up from the
325 mln tons forecast for 2006, according to the CISA.