article from abc news, page-20

Ansteel's stake in Karara will increase from 50 per cent to 52 per cent after it converted $60 million worth of loans into shares because extra funding was needed for the mine.

The move increases the Chinese company's control over Karara.

Ansteel is the biggest iron ore producer in China and one of the country's largest steelmakers.

It will now have three directors on the five-member Karara board, including the chairman who will have the casting vote.

Ansteel vice-president and Karara chairman, Chen Ping, will take on the role of Karara managing director.

The Chinese steelmaker has also put in an additional US$230 million to bolster Karara's working capital which will further dilute Gindalbie's stake to 38 per cent.

An additional $150 million to $200 million in capital spending is required this year for Karara and is expected to be provided by Ansteel.