This just on Bloomberg:Hebei Steel in Talks to Invest $6 Billion...

This just on Bloomberg:

Hebei Steel in Talks to Invest $6 Billion in Brazil, Sina Says
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March 2 (Bloomberg) -- Hebei Iron & Steel Group is in talks to invest $6 billion in an iron ore project in Brazil, Sina.com reported, citing an executive it didnt identify.

Hebei Steel is seeking a large stake in the project, the report said, without giving details or naming the Brazilian partner. Hebei Steel is also looking for coal projects in Ukraine and Mongolia, the report said.

We dont have any information that can be disclosed at the stage about the Brazilian project, Tian Zhiping, Vice President of Hebei Steel, said by phone to Bloomberg.

Hebei Steel halted a plan to buy a stake in Australian miner Aurox Resources Ltd., the report also said. The steelmaker earlier had agreed to buy 3 million metric tons of iron ore a year from Aurox, it said.

There is no deal to sell a stake to Hebei Steel, Aurox secretary Craig Ferrier said in a phone interview from Perth today. There hasnt been one. Wed be most happy to have Hebei Steel as a shareholder or participate in the project but there certainly isnt a deal in place for that.

A binding contract to sell ore to Hebei Steel remains, he said.

--Helen Yuan and Jason Scott. Editors: Tan Hwee Ann, Aaron Sheldrick.

To contact the Bloomberg News staff on this story: Helen Yuan in Shanghai at [email protected]