shougang buyer maybe

You could not miss this one today...that broker report out tonight suggesting after tax value of $4.20.


Came across this most interesting information now.....

Only one existing iron ore miner in Peru, Shougang.....they are on the coast, west of Strikes deposit. Strike Resources will use the port that Shougang currently operate from...and are about to upgrade.

The Peru Minister for Mining has in the last week arrived back from China, after meeting with Shougang President. (Shougang have a new iron ore policy......then this story breaks in the local press.)


http://en.ce.cn/Business/Enterprise/200803/31/t20080331_15015694.shtml

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Shougang Corp Peruvian iron output to double
Last Updated(Beijing Time):2008-03-31 11:04

China's Shougang Corp aims to double iron production at its Peruvian unit as demand from Chinese steel makers surged, Peru Energy & Mines Minister Juan Valdivia said.

Shougang, the parent company of Beijing Shougang Co, China's second-biggest producer of construction-grade steel, plans to invest US$700 million in the next two years in Shougang Hierro Peru SAA, Peru's only iron miner, Valdivia told reporters. Peru's government is counting on US$13 billion in mining investments to help drive economic growth of seven percent annually over the next four years. Shougang Hierro Peru increased iron output by seven percent to 5.1 million tons last year, according to Peru's Energy and Mines Ministry.

"We talked with the president of Shougang and the company has a new business policy," said Valdivia, who returned last week from a trip to China. "The company will also invest in the pier, the electricity service and sidewalks."

Shougang took over the Hierro Peru mine, 530 kilometers south of Lima, from the state in 1993. Iron ore prices have climbed sixfold since January 2000 to US$194 per ton now in China, according to Lehman Brothers Inc.

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Shougang is well known to MGX invesors....and to the Australian takeover panel....this story today by coincidince:

Panel stops Mount Gibson stake sale
Email Print Normal font Large font AdvertisementJamie Freed
April 2, 2008

THE Chinese steelmaker Shougang has been blocked from buying a large stake in Mount Gibson Iron, which could have handed it effective control of the West Australian miner.

Shougang had agreed to buy a 19.7-per-cent stake in the miner from Russia's Gazmetall. The Takeovers Panel yesterday ruled against the planned share sale since it deemed Shougang an associate of Hong Kong's APAC Resources, which owns 20.2 per cent of Mount Gibson. Mount Gibson had fought the planned share sale on the grounds that it was, in effect, a takeover by stealth.

The panel noted the close relationship between Shougang and APAC directors, executives and advisers and other factors, such as transactions between the companies, showed the pair were associated.

It has ordered the cancellation of the share sale contract between Gazmetall and Shougang, but it did not comply with Mount Gibson's request to have the shares vested with the Australian Securities and Investments Commission for disposal via a bookbuild to institutions.