set to give australia a major new iron ore min, page-6

Not long to wait now.

China increases stake in WA iron ore miner

Tuesday, 03/02/2009

Chinese steelmaker Ansteel is set to increase its stake in junior iron ore miner Gindalbie Metals Ltd by more than 20 per cent.

Gindalbie shareholders will be asked to approve the $160 million deal, which will see Ansteel's stake in the Western Australian company rise from 12 to 36 per cent.

The money would allow Gindalbie to push ahead with its Karara iron ore project in the state's mid west, and guarantee Ansteel access to a special type of ore.

Gindalbie chairman George Jones says its a significant investment in the future of the state's resource industry.

"At the moment, Ansteel source this ore form Brazil, so it replaces ore from Brazil and is not displacing anyone else," he says.

"It is new business for Australia and it is significant."