Asia¡¯s Biggest Iron Deposit Found in China¡¯s Liaoning Province

Asia¡¯s biggest iron ore deposit, with reserves of more than 3 billion metric tons, was found in China¡¯s northern province of Liaoning, according to a local government.

The Dataigou deposit, located near Benxi city, has material with iron content of between 25 percent and 62 percent, the Benxi government said in an e-mailed statement, confirming a China News Agency report. Deposits were found from 1.2 kilometers (0.7 miles) below ground to 2.015 kilometers.

China, the biggest buyer of iron ore, wants to lift output to reduce imports from Vale SA, Rio Tinto Group and BHP Billiton Ltd. The deposit is deeper than any Chinese mines in production, according to Zou Jian, a consultant and former chairman of the China Metallurgical Mining Enterprise Association.

¡°Production costs for this mine could be high because the deposit is very deep,¡± said Hu Kai, an analyst at Umetal Research Institute. ¡°It can¡¯t compete with Australian imports, which are cheaper because they have higher grades and are above ground.¡±

Angang Steel Co., China¡¯s second-largest listed steelmaker, rose 7.4 percent to close at 14.18 yuan in Shenzhen today. Baoshan Iron & Steel Co., the largest mill, rose 3 percent to 7.20 yuan in Shanghai. Bengang Steel Plates Co. rose 10 percent, the daily limit, to 7.48 yuan in Shenzhen.

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