(Yicai Global) Nov. 21 -- Ansteel Group, the world’s third-biggest steel producer, has begun construction work on a CNY22.9 billion (USD3.2 billion) project to develop China’s largest underground iron ore mine with a view to breaking the dependence of Chinese steelmakers on imports of the raw material.

The West Anshan iron ore mine is expected start production in 2027, Yicai Global learned. The mine, located in China’s northeastern province of Liaoning, has 1.3 tons of reserves and a designated annual output of 10 million tons of iron ore concentrate.

China’s iron and steel output accounts for half of the world’s total, but the country is highly dependent on iron ore from four mining giants in Australia and Brazil. China imports about 1.1 billion tons of iron ore a year.

The China Iron and Steel Association set out a plan in June to ensure iron ore supplies and reduce the need for imports within 10 to 15 years. The West Anshan mine is one of the projects mentioned in the plan.

Editor: Futura Costaglione