China discovers 3.52 bln tonnes of iron ore in 2009

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China discovered 3.52 billion tonnes of proven iron ore reserves in 2009, the Ministry of Land and Resources said in a report released on its Web site Friday.

That was among the 398 medium- to large-sized mineral deposits newly discovered in 2009, an almost 10-year high, the statement said.

It also said newly-found proven oil reserves hit 1.12 billion tonnes and newly-discovered natural gas reserves reached a record 723.4 billion cubic meters.

"Domestic supplies of iron ore have been increasing in recent years," the National Development and Reform Commission said in a statement Friday, which added iron ore output had increased to 880 million tonnes in 2009 from 260 million tonnes in 2003.

Proven iron ore reserve totalled nearly 10 billion tonnes in major deposits in the provinces of Liaoning, Hebei, Shandong, Sichuan and Anhui, the statement said.

"China's domestic supply capacity in iron ore is growing steadily as new mines start operation," the statement said.

Analysts said increasing domestic supplies of iron ore will reduce Chinese mills' dependence on foreign iron ore suppliers, which means a bigger say in price talks.

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