Baosteel joins hands with domestic Coal mines

Baosteel joins hands with coal mines to solidify material supply

To ensure the coal supply for production, China’s Baosteel has respectively signed cooperative agreements with two domestic coal mines, Guizhou Shuicheng Mining Group and Jiaozuo Coal Industry Group in the earlier this month.

After suffering the soaring materials prices in the first half of the year, China’s leading steel makers have begun accelerating the progress towards working with coal mines by means of equity participation or funding in a joint venture, apart from inking strategic agreement.It is said by Baosteel that at the beginning of this month it came to terms with Jiaozuo Coal Industry Group, one of China's major anthracite bases, to jointly fund a venture in developing Zhaoguer mine, which has a workable reserve of 147 million tons and capacity of 1.8 million tons each year.