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IRON ORE MANUAL 2016-2017

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

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

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

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

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

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

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

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REGIONAL PARTICULARS ON AUSTRALIA AND NEW ZEALAND ......................... 21960.8% of Japan's Iron Ore Imports Comes from Australia ............................................................. 221Production and Shipments of Australian Iron Ore by Supplier ......................................................... 222Rio Tinto's Iron Ore Production ......................................................................................................225Rio Tinto's Iron Ore Sales ..............................................................................................................227Rio Tinto to Achieve 360 Mtpa Run Rate ....................................................................................... 229Hamersley Iron ............................................................................................................................. 230Mineral Resources Held by Rio Tinto Group ..................................................................................233Ore Reserves Held by Rio Tinto Group ..........................................................................................234Robe River Iron Associates (RRIA) .............................................................................................. 235Production and Sales of RRIA Iron Ore ......................................................................................... 237Beasley River Joint Venture ........................................................................................................... 239Rio Tinto & Komatsu Take The Next Step In Mine Of The Future Programme ............................. 242BHP Billiton ..................................................................................................................................243BHPB Consolidated Results For YEJ 2016 ....................................................................................244Total Production and Shipments of BHP Billiton's Western Australian Iron Ore ..............................246Mount Newman Iron Ore ..............................................................................................................249BHP Billiton's Mineral Resources and Ore Reserves as of June 30,2015 ....................................... 255Mount Gibson Iron ........................................................................................................................256Cliffs Natural Resources Pty Ltd, Australia - Asia Pacific Iron Ore ..............................................257Fortescue Metals Group ................................................................................................................. 258Atlas Iron ....................................................................................................................................... 262Arrium (former OneSteel) ..............................................................................................................263Grange Resources ..........................................................................................................................265Territory Resources ....................................................................................................................... 266Gindalbie Metals ............................................................................................................................266Taharoa Iron Sand (New Zealand) ................................................................................................. 267Australian Iron Ore Mining Companies ..........................................................................................269Australia's Port Infrastructure Projects ..........................................................................................271Australia's Iron Ore Exports by Destination ................................................................................... 272Australia's Iron Ore Exports by Port ..............................................................................................273

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

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

REGIONAL PARTICULARS ON SOUTH AFRICA,NORTH AMERICA AND EUROPE ................................................................ 331

Kumba Iron Ore (South Africa) ..................................................................................................... 333Assmang Iron Ore (South Africa) ..................................................................................................337IOC (Canada) ................................................................................................................................339ArcelorMittal Mines Canada : Formerly QCM (Canada) ................................................................343Cliffs Natural Resources: Formerly Cleveland-Cliffs, Inc. (The U. S. A. ) ....................................344LKAB (Sweden) ..........................................................................................................................347

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