November 22, 2008

Update on Zhanjiang project

It is reported that Mr Huang Huahua governor of Guangdong, Mr Li Ronggen deputy governor and Mr He Wenbo of Baosteel jointly visited Zhanjiang port and learned the details about the evolvement of the Zhanjiang steel project's preparation work.

After the visit, Mr Huang Huahua made positive comments on the project's prophase work by saying the work is in smooth progress, the Longteng logistics pellet item an independent project supportive to the steel base also gets on well and the land levy and resettling work is carried on in steps.

Mr Huang said that incorporation of the Guangdong Steel Group should be picked up. He said that a good scheme has been made on the group incorporation, and called all parties to continue to push it forward and insure the unveiling within this year.

He said that further efforts should be made to strive for a quick approval for the overall construction. Supported infrastructures, like highway, railway, bridge and water supply is expected to be planned as soon as possible.

Zhanjiang project is designed with 10 million tonnes per year capacity in the first phase with total investment of CNY 69.6 billion.