Posted on 18 Jul 2014
According to statistics, in January-May, Chongqing Steel
realized a sales revenue of 7.421 billion yuan, decreasing by 34.19 percent
year on year, while the sales profit totaled minus 579 million yuan, sales profit
rate was minus 7.81 percent. Thus, it had to sell its stake in Australia’s
mining to deal with the dilemma of suffering losses. Now, the assets
realization and government subsidies are the last straw for Chongqing Steel to
survive.
The state-owned parent of Chongqing Iron and Steel Co Ltd, a
medium-sized Chinese steelmaker, has successfully acquired an Australian iron
ore project early in 2009. The project had prospect reserves of 3 billion
tonnes.
