Hoa Phat Group recommends to buy domestic iron ore

According to the urgent Document No 8893/BCT-CNNg of The Ministry of Industry & Trade to Hoa Phat Group on September 23rd, 2008 on the iron ore consumption of Thang Long Mineral & Metallurgy Joint Stock Company, HPG officially recommended to buy all 100,000 tons of iron ore of this enterprise.

Under the approval of the Ministry of Industry & Trade, HPG and some other steel enterprises have been in the negotiation process with Thang Long Mineral & Metallurgy JSC, basing on the international and regional market price.

Hoa Phat Iron & Steel Complex in Kinh Mon District, Hai Duong Province, with the 350,000 ton/year - capacity Factory has been in the urgent implementation phase. With the production scale at source, the materials on demand of HPG is long - term to meet the Iron & Steel complex’s operation. Currently, the biggest difficulty of Hoa Phat Iron & Steel Complex, as well as the other furnace projects is the materials. Therefore, HPG had an official document to recommend The Ministry of Industry & Trade about the iron ore issue in the domestic market, compliance with the instruction of the Prime Minister giving priority to iron ore consumption to the domestic furnace projects, limiting  in maximum iron ore export.

In the short - term, it is estimated that HPG will consume approximately 600,000 tons ore per year and demand to buy 200,000 tons iron ore in the last Quarter of this year.

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