hebei steel seeks to finance aurox project, page-8

http://www.steelguru.com/news/index/2008/10/25/Njg0NjU%3D/Chinese_steel_group_increasing_stake_in_Aurox_Resources.html


Reuters reported that China's state owned Hebei Iron and Steel Group is in early talks with Australian iron ore prospector Aurox Resources to finance the Aurox's 6 million tonne iron ore project.

Mr Charles Schaus MD of Australian miner's said that "We met with Hebei Iron and Steel's president yesterday, but he declined to disclose more details because he said negotiations were at an early stage.”

Mr Schaus said talks with Hebei Iron and Steel had progressed slowly due to its state-owned nature and global recession fears. He said that it takes a longer time for them to make a decision, and they said they are going slowly now due to the market."

Mr Schaus said Aurox, the prospector with a half of billion tonnes of iron ore, will start construction early next year and expects to launch production for the project by the end of 2009. He said the miner will have annual capacity of 6 million tonnes of iron ore after construction is completed.

It would be the second investment made by a Chinese firm in Aurox after RockCheck Steel Group, one of China's top 10 private steel makers, bought a 9% stake in the Perth-based resources firm for AUD 10 million last July.