According to CITIC, iron ore output from the project's first production line is expected to ship in February. Construction of the second production line is expected to be completed in May.
"CITIC Pacific has already invested a lot in the project, but it has missed the golden years when iron ore prices rose dramatically. Although iron ore prices have rebounded in recent months, it is uncertain whether the trend will continue because of the slow recovery of domestic demand," Zhang Lin, an analyst from Beijing Lange Steel Information Research Center, told the Global Times.
Before Wednesday's statements, CITIC Pacific and MCC had long publicly blamed each other for the delay and rising costs of the Sino Iron project.
"Both MCC and CITIC Pacific lacked experience in the operation of overseas projects. They did not consider potential risks, such as Australia's safety standards and labor shortages, during the preparation process," a consultant who declined to be named at Beijing-based HejunConsulting told the Global Times.
"If CITIC had appointed a local contractor rather than a Chinese State-owned company without enough experience in Australia, the project might not have seen so much trouble," he said.
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