BEIJING May 17 Commodity company IRC Ltd
on Wednesday said it was considering restarting its
1.1-million tonnes per year iron ore mine in the far east of
Russia, the latest sign of revival in a sector shaking a
"Following the positive price movements in 2017 and the
recent stabilisation in the bulk commodity market, the board is
considering restarting Kuranakh, including options of potential
cooperation with other parties," the Hong Kong-listed company
said in a statement.
The Kuranakh mine, in Russia's Amur region, was producing
about 1.1 million tonnes of iron ore concentrate each year
before it was put under 'care and maintenance' in early 2016. It
was also churning out about 200,000 tonnes a year of ilmenite, a
Iron ore prices have surged 30 percent and ilmenite by 150
percent since the mine was suspended, the company said.
However, the statement comes at a time when futures prices
in China have toppled off record highs hit in recent
months, dampened by concerns about a slowdown in demand in the
world's top importing nation and a growing glut as stockpiles
The most-active Chinese iron ore futures have
fallen by about 30 percent since hitting record highs of 650.5
yuan ($94.49) per tonne in February.
Rocketing prices prompted some Chinese producers to reopen
mines after suffering years of tepid demand.
($1 = 6.8843 Chinese yuan renminbi)
(Reporting by Josephine Mason; Editing by Joseph Radford)