BaoSteel is going to need a lot of ore due to its

BaoSteel is going to need a lot of ore due to its planned expansion as noted at the end of this wikipedia article-is the reserve they acquired producing?because it takes even big boys 2 or 3 years to go from concession to production.

BaoSteel is the company buying much of CWRN's primary iron products-2nd largest steel company in the world and cant fail because its a China state owned company

Baosteel

From Wikipedia, the free encyclopedia

Shanghai Baosteel Group Corporation Shanghai Baosteel Group Corporation logo.svg Type Government Owned Industry Steel Founded 1978 Headquarters Shanghai, China Key people Xu Lejiang (Chairman) Products Steel, flat steel products, long steel products, wire products, plates Revenue increase US$ 21.7 billion (2009) Employees 108,914 Subsidiaries Baosteel Group Finance Co. Fortune Trust & Investment Co. Shanghai Baosteel Engineering & Equipment Co. .....

, commonly referred to as Baosteel is a state-owned iron and steel company headquartered in Shanghai, China. Baosteel is the second-largest steel producer in the world measured by crude steel output (after ArcelorMittal), with an annual output of around 20 million tons (China's total steel production in 2006 was 381.5 million tons).[3] It employs around 109,000 employees, has annual revenues of around $21.5 billion and produces a mix of high-quality products.[4] Baosteel's IPO on the Shanghai Stock Exchange in 2000 was the largest in China up to that time, raising CNY 7.7 billion despite being limited to domestic investors only. History Beginning in 1978, the Chinese government began to institute economic reforms.

Plans called for a large integrated steel production facility to be located near the port of Shanghai. The Baoshan District, a suburb of Shanghai, was chosen as the site and Japanese assistance was enlisted in constructing one of the most modern steel plants of the time. As the government's flagship steel company, Baoshan Iron and Steel (Chinese: pinyin: Baoshan Gangtie (Jítuán) Gongsi) as it was originally called, benefitted from acquiring the best engineers and managers, access to cutting edge technology, and receiving hefty government contracts. Baoshan Iron and Steel also benefitted from the breakneck pace of Chinese economic expansion which ravenously consumed all the steel available. However, with the continuing liberalization of the Chinese economy, Baoshan found itself in competition with new rivals, both foreign and domestic. The company decided to add an export trade marketing component to remain competitive; it scored notable success in South Korea. Although hurt by the Asian financial crisis, Baoshan pushed through with a merger of other money losing state owned enterprises, though it had managed to remain profitable itself. On November 17, 1998, the former Baoshan Iron and Steel (Group) Corporation absorbed the Shanghai Metallurgical Holding Group Corporation Shànghai Yejin Kònggu (Jítuán) Gongsi) and the Shanghai Meishan Group Co. (Chinese: ????(??)??; pinyin: Shànghai Méishan (Jítuán) Gongsi) to form Shanghai Baosteel Group Corporation. The new conglomerate was the largest steel producer in the country with annual steel production of nearly 20 million tons. Baosteel also found partnerships with former domestic rivals in the Shougang Group and Wuhan Iron and Steel Group Corporation, entering into an alliance in 2001. In the same year Baosteel signed an agreement with ThyssenKrupp of Germany.

The company has ambitious plans for expansion, currently constructing a state-of-the-art facility in Zhanjiang, Guangdong, at the cost of $10 billion; it is expected to come into production by the end of the decade. Baosteel also intends on launching an IPO, likely in Hong Kong, on top of its current listing on the Shanghai Stock Exchange.