China says its iron ore is worth $US2.4 billion

China says its iron ore is worth $US2.4 billion

China’s government has issued an official notice to miners that the world’s largest producer of iron ore has increased its estimated value by $US700 million ($1.4bn) since January, after a series of scandals and price increases.

The notice from the State Administration of Industry and Commerce (SAIC) says the company’s mining division has increased the estimated value of its iron mines by an average of 5.3 per cent each year since 2012.

“Since 2012, the iron mining company has increased production by a total of 5,200 million tonnes of iron and copper, from an estimated production of approximately 1.8 million tonnes,” it said.

The SAIC said the new management team, which took over operations in July, will focus on reducing costs and improving efficiency. “

The increase in the estimated annual value of iron mining by the iron mine division was due to various market-related issues, as well as a number of changes in the mining industry, including the establishment of a new mine-side management team and a reduction in mining costs.”

The SAIC said the new management team, which took over operations in July, will focus on reducing costs and improving efficiency.

“This new team will continue to implement the mine-level management plan and enhance the company management system to ensure a smooth, orderly and high-quality mining experience for all of the company members,” the notice said.

A spokeswoman for SAIC told Reuters news agency the notice was an “open letter to miners”.

“The iron mine’s management team will be responsible for the day-to-day management of the mine, including its production and mining activities, and it will be the responsibility of the new team to conduct the company-wide financial management,” she said.

SAIC’s notice comes days after it announced it was ending a five-year investigation into a company that it says was illegally extracting ore from mines in eastern China and illegally selling the extracted iron ore to Chinese buyers.

Iron ore prices plummeted after a wave of protests in 2012 that were sparked by a shortage of iron in China, and a government crackdown on the industry.

SAIS decision to drop its investigation prompted a sharp drop in prices.

Last week, the Chinese Central Bank reported that the country’s economy contracted by 2.1 per cent in the third quarter, compared with the same quarter last year.

The country’s central bank has been stepping up its monetary stimulus, and this month the Chinese central bank will launch an auction of bank notes, a move that could further fuel iron ore prices.

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