The mines are located in Shandong Laiyang, low hilly environment, where the most developed highway networks in the country. The accessibility of the region is highly favourable to mining and operation of refinery.

According to the China Coal Resource, crude steel output of Shandong Province was 44.59Mt in 2008 and was ranked as the third largest steel producing province in China behind Hebei and Jiangsu provinces. With an iron ore production of 16.40Mt in 2008, steel mills in Shandong Province are heavily reliant on ores and imports from overseas and other provinces in China.

There are only limited large iron refineries and iron ore mines in Shandong Province, large domestic demand should safeguard the sales of the Group’s iron ore concentrates.

The transport network in the region is excellent and vehicular access to the area is via a two-lane highway from Yantai or Qingdao to Laiyang, followed by a 10km road and 5km dirt road to the site.

The project area is conveniently located, it has easy access to water, electricity and skilled workforce.