On August 16, 2024, Baowu Resources celebrated a landmark event in its international expansion strategy with the successful arrival of its inaugural shipment of "Silk Road Powder" at the Zhanjiang Dongshan Base, part of Baosteel. The bulk carrier "Dongshan," a capesize vessel, marked the entry of this premium iron ore product into the Chinese market, showcasing a significant achievement for Baowu Resources and its global partnerships.
"Silk Road Powder" originates from the Ashburton project in Western Australia’s Pilbara region. This venture is a testament to Baowu Resources' innovative overseas collaboration model. The project, developed in partnership with Australia Mineral Resources Corporation, Korea POSCO Iron and Steel, and United States Metal Coal Company, boasts a commercial capacity of 20 million metric tons annually. The successful delivery of this first batch ahead of schedule represents a strategic win for China Baowu, aligning with its broader international development goals and emphasizing its commitment to integrating overseas iron ore resources into its supply chain.
The "Dongshan," named after the Zhanjiang base, carried a substantial load of 180,000 metric tons of "Silk Road Powder." The vessel’s preparations, including crew changes, material supply, and painting, were completed efficiently, ensuring a smooth transition from Nagasaki Port in Japan to its final destination. This successful execution highlights Baowu Resources' meticulous planning and operational excellence in handling complex international logistics.
Since the signing of the contract in November 2022, Baowu Resources has demonstrated remarkable progress, reflecting its proactive approach in project management and execution. The introduction of "Silk Road Powder" is part of a broader strategy to enhance global resource integration and create value within the steel industry. This initiative underscores Baowu Resources' focus on leveraging its technological and logistical capabilities to drive high-quality development across its supply chain.
The arrival of "Silk Road Powder" adds to Baowu Resources' growing portfolio of overseas mineral products. The company has already introduced various mineral products, including mixed powder and resources from Liberia, Laos, and Australia, into the market. Each product represents a step forward in Baowu Resources' mission to optimize its resource management and operational efficiency.
Looking ahead, Baowu Resources plans to further implement its "Four Modernizations" and "Four Haves" strategy. This approach aims to enhance resource integration, improve technological advantages, and streamline logistics. By focusing on cost control, operational efficiency, and resource valuation, Baowu Resources seeks to inject substantial momentum into the high-quality development of its steel ecosystem partners, thereby reinforcing its role as a key player in the global steel supply chain.
The berthing event was attended by representatives from Baowu Resources, Baowu Raw Materials, and Zhanjiang Iron and Steel Co., Ltd., alongside officials from Zhanjiang City and various port joint inspection units. This collaborative effort underscores the collective commitment to advancing the steel industry’s global integration and efficiency.
