As the most important raw material in stainless steel production, nickel in the production of a large percentage of the cost. In general, the production cost can be accounted for seven of stainless steel as above. Nickel belongs to the global scarcity of strategic resources, and nickel resources in China is also very short, production can only meet the domestic demand of around 30%. As the world's largest stainless steel manufacturer, Taiyuan Iron and Steel Group, at least 10 million tons per year of nickel metal. Dagon Hill nickel mine in Burma, its high-grade nickel ore reserves amounted to 3,000 million tons, 700,000 tons of nickel metal. The development of the mine for TISCO stainless steel industrial development and the country has a great role in promoting.
It is understood that the total investment over 800 million U.S. dollars, the service life of 20 years, the production of nickel-iron 85,000 tons, 22,000 tons of nickel metal. With mine production system, smelting system will also be put into operation during the year.