Chinese customers will buy up to 20 million tons of iron ore from Citic Pacific’s US$4 billion project in Australia, Bloomberg reported. Citic, an arm of China’s largest investment bank, has signed preliminary agreements to sell up to two-thirds of the iron ore it produces to Chinese steel mills, Between eight and 10 million tons of iron ore will be sold to the company’s three steel mills in China, leaving the remainder of the projected 28 million tons for sale to other mills, a company spokesman said. According to the Rio Tinto Group, China is projected to consume more ore in the next five years than Australia has ever produced.
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