Chinese steel-making giant Sinosteel Corporation has been...

Chinese steel-making giant Sinosteel Corporation has been encouraged by Western Australian Premier Colin Barnett to investment more in the state's mining companies.

Mr Barnett is in China to spur on the Asian superpower to invest in a new iron ore export port at Oakajee in the state's midwest region, and met Sinosteel president Huang Tianwen on Wednesday.

Sinosteel flagged in September last year that it was in talks to invest in Australian firms including nickel and manganese miners.

At the time this development was hot on the heels of its $1.36 billion acquisition of Midwest Corporation Ltd.

That deal, a hostile takeover, was the first time a Chinese state-backed group gained control of an Australian resources company.

"I made it known that the WA state government would be supportive of Sinosteel increasing its share in other WA mining companies," Mr Barnett said in a statement on Wednesday.

Sinosteel could increase its 5.86 per cent stake in iron ore miner Murchison Metals Ltd, which is developing the Oakajee port and associated rail through its joint venture company with Japan's Mitsubishi Corporation, Oakajee Port and Rail (OPR).

Sinosteel had previously sought to take over Murchison but was restricted by Federal Treasurer Wayne Swan in September to acquiring 49.9 per cent of the target, which has projects adjoining Midwest's.


http://www.businessday.com.au/breaking-news-business/premier-urges-china-to-invest-more-in-wa-20090722-dti1.html