China will study plans to create reserves this year for iron ore and coal as national strategic resources, the China Iron & Steel Association （CISA） said on Thursday.
As the world's top buyer, China will invest more in iron ore mines overseas in a move to reduce its heavy reliance on imports from global iron ore miners Rio Tinto （RIO.L: Quote）（RIO.AX: Quote）， Vale （VALE.N: Quote）（VALE5.SA: Quote） and BHP Billiton （BHP.AX: Quote）（BLT.L: Quote）， it said.
"China should change its vast foreign exchange reserves into state reserves of resources that we rarely have but badly need," said Luo Bingsheng, who this month stepped down as vice-chairman of CISA and is now a special advisor for the association.
China is expected to raise crude steel output by 5 percent to a new record of 660 million tonnes this year, suggesting a larger appetite for the raw material, the industry ministry said earlier.
CISA also suggested it would boost domestic iron ore production to meet rising demand, despite a decline in iron ore grades over the past few years.
China's iron ore import prices hit around $200 per tonne delivered, or $168 per tonne free on board Australia, in mid February, the highest since early 2008
"Personally, I think this price is at the highest level. These are astronomical figures," Luo said.
Luo said if China's domestic iron ore production maintained last year's growth rate, imports this year would probably remain steady or even decline slightly from 2010.
（Reuters）
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