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China's domestic tastes of magnetite ore are low, mostly around 10%, grinding balls while the market for iron concentrate tastes must reach about 65%. So it is necessary to adopt the necessary processing equipment, processing the lowgrade iron ore to high grade iron concentrate.

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Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel—98% of the mined iron ore is used to make steel. Indeed, it has been argued that iron ore is "more integral to the global economy than any other commodity, except perhaps oil".

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Sources of oolitic iron ore worldwide are abundant and ubiquitous, but there is currently no commercial technology to extract iron from oolitic iron ores. Mineral processing of the ore to generate a commercial iron ore concentrate is very challenging due to the nature of these ores.

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BACKGROUNd TO KUMBA IRON ORE Kumba Iron Ore Ltd is the fifth largest supplier of seaborne iron ore in the world. Operating through its 74%held subsidiary Sishen Iron Ore Company (SIOC), Kumba has two operational mines at Sishen and Thabazimbi, with a third, Kolomela, scheduled to begin production in 2012.

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