Editor's note: in 2010, international iron ore prices rose or more than 100 percent. In such a grim situation, for Chinese enterprises, overseas acquisition of upstream iron ore resources is not only a profitable business, but also a necessary move to adapt to the laws of the international iron ore market. The acquisition of Brazilian iron ore by east China nonferrous prospecting bureau has played an inestimable role in alleviating the shortage of domestic resources, in the future for iron and steel enterprises to strive for the right to speak on the international iron ore price negotiations, and has also set an example for many domestic geological exploration and development enterprises.

In the early hours of March 25, it was heartening to hear from Brazil that the east China non-ferrous exploration bureau had paid $1.22bn for 100 per cent ownership of the huge Jupiter iron ore deposit owned by burmar asset management. The prospective reserve of the mine is 1.39 billion tons, which belongs to the open air mineral deposit.

Reporters learned that the jupeter iron ore project is located in the state of minas, Brazil, the state is the largest distribution of iron ore in Brazil, known as the world famous "iron quadrilateral" region, most of the iron ore in vale are concentrated here. On March 24, the day before east China nonferrous signed the agreement, vale formally proposed a 114% increase in iron ore prices for 2010. This makes the east China non-ferrous prospecting bureau's successful acquisition of jupide iron ore has special significance.

Previously, east China nonferrous exploration bureau director shao yi introduced to the reporter, the biggest characteristic of the zhupide iron mine is the mine production conditions are mature, the mine is currently in production, with an annual output of 3.5 million tons of iron concentrate. According to the preliminary calculation, only a small amount of investment is needed to achieve an annual output of 5 million tons of refined iron ore. If the acquisition is successful, the east China non-ferrous exploration bureau will further increase investment, and it is expected to achieve an annual output of 20 million tons by 2012, which is only second to vale's annual output of iron ore in Brazil and second to Brazil's iron ore output. Shao yi estimated that the iron ore project will bring a conservative annual investment yield of 20 percent to the east China nonferrous exploration bureau, and also increase the bargaining chip of China's iron ore price negotiations with the three international iron ore giants. 'if we want the price of raw materials in China's downstream industries not to be controlled by people, we must gain control of the upstream resources,' Mr. Shao told reporters.

Reporters learned that, firmly seize the second half of 2008 since the financial crisis, east China non-ferrous exploration bureau actively explore overseas resources market, only in 2009, the bureau in the new overseas 22 exploration rights, a mining right. The newly added mining right covers an area of 4365.83 square kilometers, including 5 exploration rights which are owned by itself, and the mining right covers an area of 2100.79 square kilometers. The company has 17 exploration rights and 1 mining right with an area of 2,265.04 square kilometers. The main types of mineral rights are copper, gold, iron, zinc, lead and uranium. By the end of 2009, east China nonferrous actually owned 91.74% of the total overseas mining rights.