China imports more than 80% of its iron ore requirements from India and Australia and Brazil. The geological department has now found a massive 3 billion tonnes of Iron ore reserve in Liaoning Province which can easily take care of next fifty years of Chinese Iron ore requirements.
The latest Chinese finding could easily be the largest Iron ore deposit across Asia.
The reserves is said to be spread over a four kilometer radius area up to 2500 meters depth. The actual mining might start by 2011 , by when the global Iron ore rates might go down by anything between 30% to 70%, since China is now consumes over 30% of the global Iron ore production. Even a 50% cut in Chinese imports in the year 2011 could mean a huge crash in global demand which the industry has to prepare itself, from now onwards.