Baosteel gets 15pc of Aquila for $286mAAPAugust 28, 2009...

Baosteel gets 15pc of Aquila for $286m

AAP
August 28, 2009 10:31am
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+ - Print Email Share Add to MySpace Add to Digg Add to del.icio.us Add to Fark Post to Facebook Add to Kwoff What are these? WESTERN Australia-based exoplorer and producer Aquila Resources has reached a strategic co-operation agreement with Chinese steel giant Baosteel to develop its iron ore, coal and manganese projects.
Under the deal, Baosteel will take up to 15 per cent of Aquila, investing up to $286 million in return for as many as 43.95 million shares in Aquila.

Baosteel will work with Aquila to develop the Australian company's steel raw materials projects, including iron ore, coal and manganese.

"The strategic co-operation that has been established by the signing of these two agreements is expected to deliver significant long-term benefits for both Aquila and Baosteel, and significant benefits to both Australia and China,'' Aquila said.

"This is a transforming event for Aquila. China's largest steelmaker has established a strategic cooperation with Aquila, not only to make a major investment in the Company, but also to advance participation in some of the important projects in the Companys portfolio.

"For Baosteel, this represents its first major international strategic investment in a public company and is an important transaction in Baosteel's strategy to secure long-term supply of critical steel raw materials for its steel making business.''