Over the past few years, world consumption of iron ore grows 10% per annum on average with the main consumers being China, Japan, Korea, the United States and the European Union. Indeed, this mineral has been transformed into one of the most sorted one, with countries such as Brazil and Australia taking the lead in iron ore's mining.
The Group's venture into iron ores business was initially mooted in the late 2004. Sensing that there will be great opportunity in this business in the future, the Group started off with trading of iron ore from Malaysia to China.
Today, the Group's activities in iron ores have been extended to both domestic and overseas. In Malaysia, iron ores obtained from various locations in several states in Peninsular Malaysia are processed and refinanced at the processing centre in Kuantan, Pahang.
Outside Malaysia, the Group's iron ores business is mirrored on a joint venture model where the Group is given the sole rights to market and sell the ores. Based on this model, the Group will normally partner up with the locals and formed a joint venture effort in excavation and processing of iron ores. Currently, the Group has established joint operations in Sumatera, Indonesia where several shipments of iron ores have been successfully sold to China.
Moving forward, this business promised an exciting growth potential. In the simplest view, iron ores are "hard commodities" that in another word, is not replaceable. Yet, demand for this commodity undoubtedly will increase, inevitably resulting in continued growth. An early venture into this business by the Group will ensure a firm footing in this industry.