more chinese investment in african mines

Found some interesting information last night, while researching the Chinese market. One of the largest Chinese steelmaker got the support from the government in buying two major mines in Africa. This is actually part of the move from the Chinese steel sector to secure Iron Ore for production, instead of relying on the big miners (who are successfully increasing the IO price for the last 12 months). West Africa is the prime target.

Cheers.

Snowfree

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Wuhan Steel gets green light for Africa ventures

China's third largest steelmaker Wuhan Iron and Steel Group on Monday received approval from the National Development and Reform Commission (NDRC) for two overseas acquisition deals in Africa that are expected to contribute nearly 2 billion tons of iron ore deposits.

The government cleared Wuhan Steel's plan to acquire the Soalala iron ore deposit in Madagascar with two other companies and the company's stake buy in a Liberian iron ore project.

The exploration license for the Soalala iron ore project was granted to Hong Kong-based Wisco Guangxin on May 8, a joint venture company 42 percent owned by Wuhan Steel, 38 percent by the Guangdong Foreign Trade Group Co and 20 percent by Kam Hing International Holdings, according to a statement released by Hong Kong-based Kam Hing International Holdings.

The project involves an area of more than 430 square kilometers and contains more than 800 million tons of reserves available for exploitation.

Wuhan Steel also signed an agreement on March 12 to pay China-Africa Development Fund $68.46 million for a 60 percent stake in China Union Investment Co, which owns an iron ore deposit located in central Liberia.

[Source] http://english.peopledaily.com.cn/90001/90776/90883/6998253.html