Wuhan Steel Group is to phase out 5-8Mt/y of obsolete capacity to help gain approval of its Fangchenggang project in Guangxi province, from the central government of China.

It hopes to break ground later this year after buying land three years ago. The project was supposed to break ground in 2008, but was postponed due to the financial crisis.

Wuhan Steel said it would shut down about outdated facilities located in Wuhan and Liuzhou to help gain approval for the Fangchenggang Project

Wuhan is also considering having its overseas iron ore assets listed on the stock market.

It is involved in eight overseas iron ore mines in Canada, Brazil, Australia, Liberia and Madagascar, with combined reserves of 1bnt.

Among these projects, three are controlled by Wuhan and will be on stream in three to five years, while the rest are already in production. Source China Metals e-mail chinametal@xinhua.org