China is currently one of the most industrially developed countries in the world. The demand for a variety of raw materials is very large. Domestic resources alone are not enough. It is also necessary to import large quantities of raw materials from other countries. It is inevitable that some ill-intentioned countries will make a fuss about industrial raw materials.
Before that, however, China received good news. At the critical moment of China's shortage of materials, African countries sent us a gift worth 100 billion yuan and transferred a super-large iron ore with reserves of 5 billion tons to us. This iron ore mine is guinea West Mandu iron ore, not only huge reserves, but also the ore quality of the world's first. China has won the largest iron ore mining rights in Africa, which means that there is no need to look at people when buying iron ore in the future, and Australia regrets it too late.
Australia used to be one of the countries with the largest imports of iron ore in China and is highly dependent on it. In 2019, 67% of iron ore was imported from Australia, which is why Australia has always said that it wants to increase prices and wants to achieve some of its own goals through this means. Iron ore prices in Australia have remained high so far. As an indispensable raw material for smelting steel, Australia does not use iron ore as an example. Their attitude reminds us that the initiative is king in their own hands.
China's demand for steel materials is very large, so the import of raw materials also needs to diversify the market, and cannot rely too much on a Western country. For example, iron ore, we have acquired the mining rights of the Largest West Mandu iron ore mine in Africa through the acquisition of equity, and it is expected to be put into production within 3-5 years. Iron ore reserves are among the highest in the world, and the quality of iron ore is very high. The same amount of iron ore could produce more steel.
In addition, cooperation with African countries is of great benefit to both sides. Guinean iron ore mining can earn a lot of foreign exchange earnings, helping them to develop their economies. In addition, in order to meet the needs of ore transportation, Chinese enterprises will also help Guinea build infrastructure such as roads and promote the development of national transportation, which is a win-win cooperation.
China's acquisition of the Simandeau iron ore is also a wake-up call for other countries. Trade between countries should be based on mutual respect. Australia's deliberate price hike will never be accepted. Now that China has found a more reliable partner, Australia will no longer be China's largest importer of iron ore. Other countries that have trade cooperation with China had better not have bad ideas, otherwise they may also lose the opportunity to cooperate with China.