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The First National “Bonded Screening + International Transshipment” Business for Iron Ores from Oversea Mines Having Landed in Dalian Free Trade Area

Toaccelerate the construction ofDalian international shipping center, forge an oredistribution center and ore blending base in northeast Asia, Dalian Free TradeArea, giving full play to itsfirst go and first try system innovationadvantage, hastaken the lead in officially carrying out the new business modeof "bonded screening + international transshipment" for the iron orescoming from oversea mines in the domestic customs supervision area by introducingtheinternational mining giant Rio Tinto Group,to vigorously promote theconstruction of the import trade promotion innovation demonstration zone, whichcan be replicated over thecountry.

Recently,the Ore Terminal of Dalian Port has introduced the international mining giantRio Tinto Group to take the lead in officially carrying out the new businessmode of "bonded screening + international transshipment" foriron oresfrom oversea minesin the domestic customs supervision area. The first batch of72,000 tons of directly mined iron ores arrived at Dalian Port on Sept. 25.After "bonded screening" at the Ore Terminal of Dalian Port under theglobal supervision of Dalian Customs, the ores were successfully shipped on Oct.22 on boardthe ship "Haifeng" leaving for Korea.

        01.Iron ore screening reasons

Thequality of iron ores,as the main raw material for blast furnace smelting, isclosely related to the smelting process and technical and economic indicators.The main factors that determine the quality of iron ores are chemicalcomposition, physical and metallurgical properties. The requirements of blastfurnace smelting for iron ores are: high iron content, less gangue, lessharmful impurities, chemical composition stability, particle size uniformity,good reducibility and certain mechanical strength and other properties. Theparticle size of ores refers to the diameter of ore particles, which directlyaffects the air permeability, heat and mass transfer conditions of charges.Iron oresfor loading in furnace in a steel plant should have appropriateparticle size.Oversize particles will reduce the contact area of coal gas andiron ores, so that it is not easy to heat and reduce the iron ores, the coal gasutilization becomes worse, and the coke ratio increases; sub-sizeparticles willincrease airflow resistance and simultaneously it is easy for the same to be blownout of the furnace to result infurnace dust loss and production volumereduction; uneven particle size will seriously affect the air permeability ofthe material columns. The iron ores of overseas mining enterprises, due to bebroken in the process of mining, transportation and ship unloading, aredifficult to fully meet the requirements of iron and steel enterprises inrespect of average particle size and quality. Therefore, it is necessary toscreen the iron ores from overseas mines to reduce the powder rate, and thescreened lump orescan be smelted in furnace directly without sintering.

02.Bonded iron ore screening process

TheOre Terminal of Dalian Port hasthe SP10 lump ores of Rio Tinto Group coming fromAustralia (tax number 2601119000) screened intothe iron ores of two particlesizes by using vibration screening machine in the special customs supervisionarea, with the post screening products containing about 85% lump ores (taxnumber 2601119000) and 15% powder ores (tax number 2601112000). In fieldscreening,a loader is used for feeding toscreen withvibration screening machineequipped with 8mm screenmesh. The iron ores after screening (lump ores) containpowder at a rate less than 3%, being high grade lump ores that can be smeltedin furnace directly in a steel plantwithout sintering, to reduce the energyconsumption in the process of iron and steel smelting and carbon emissions.

        03. In–depth cooperation ofport with oversea mines

OnSept. 27, 2021, Liaoning Port Co., Ltd. and Rio Tinto Mining & Trading(Shanghai) Co., Ltd. signed a cooperation framework agreement in Dalian tofurther expand the new cooperation mode of iron ore business and supply chainservice. According to this agreement, Liaoning Port Co., Ltd. and Rio TintoMining & Trading (Shanghai) Co., Ltd. shall,based on the principle ofreciprocity and mutual benefit, jointly explore the in-depth cooperation in thefield of bulk commodities including iron ores, etc., and shall rely onthe existingfoundation to make the renminbi spot iron ore tradebigger and stronger, enrichand perfect such iron ore processing functions by port as ore blending,screening, crushing, etc., innovatesuch supply chain service modes as "changeof ore to ore collection", "inland distribution point" to achievewin-win development. Following the first cooperation in launching multi-countryand multi-ore "bonded ore blending" in Chinese portsand the signingof the Memorandum of Cooperation Understanding by both parties on Sept. 22,2020, both parties joined hands again in Sept. this year to officially launchthe "bonded screening + international transshipment" business betweenthem to further expand the depth and breadth of cooperation with each other.

Previously,iron oreswere usually transported to a piling yard for screening by railway,road and other means after customs clearance, being not only long in period,but also increasing the logistics cost. At the same time, the scale andefficiency of screening operations was greatly affected by site, environmentalprotection facilities and environmental protection policies. As far asenterprisesthemselvesare concerned, screening on a piling yard hadsuch problemsas small single-batchscreening capacity, high idle cost and large overall loss.

Ironore "bonded screening + international transshipment" is a kind ofbusiness toprocess iron ores after having it graded, classified and screenedinto different particle sizes in a bonded state in a bonded supervision placefor transshipment to a third country. The shifting forward of the screeninglink to the port customs supervision placeleads not only to innovation in bondedsupervision mode, promotingthe transformation and upgrading of port business,enhancingthe foreign trade radiation ability of Dalian port to Japan and SouthKorea, but alsoto an effective reductionof the investment cost, logistics costand carbon emission of iron and steel enterprises, optimizing the iron oretransaction quality of oversea mining enterprises and improving the productadded valueat the same time.

DalianFree Trade Area, withan innovative development environment to go and try first andthe policy function for special customs supervision area, has the resources ofore terminal, storage and transportation, trade and domestic and foreignmarket. Next, Dalian Free Trade Area will give full play to the first go andtry, demonstration and leading role endowed by the state, integrate domesticand international resources,utilize the policy advantage of finance and tradeliberalization, facilitation, the comprehensive advantage of regionalinnovation to promote Dalian port to establish a relationship of more extensivecooperation with Rio Tinto, explore more cooperation opportunities, furtherexpand new modes ofironore business and supply chain service cooperation, forgehand in hand an iron ore blending and distribution center of first class in theworld in Northeast Asia to facilitate Dalian Northeast Asia internationalshipping center construction.