shougang steel

I was reading ADY announcement last night, dated 2 May 2008 - re: Shougang Steel.

We are very excited to have the President and Deputy President of Shougang
International and their technical and business team currently making
arrangements to visit the nine “retired” mines on our 7,400 hectares of iron ore
magnetite tenements and operation at the Santa Barbara mine, the 3,500
hectare magnetite deposit at Pampa Tolofo yet to be developed, and existing
and future port locations the main one being Punta Alcalde near the town of
Huasco.

Then was reminded about Shougang's attempt to take a stake in Mt Gibson,

"Steelmaker Shougang's attempt to buy 19.7% of Australian miner Mount Gibson Iron was blocked after running into strong opposition from Australian regulators."

Well worth a read,
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1778

It appears Shougang is proactively trying to protect their interests, taking a stake in Iron Ore companies.

Got me thinking but, why would the "President and Deputy President of Shougang
International and their technical and business team" visit the several thousand hectares belonging to Cia Minera, (60% ADY). Very "hands on" from the top of the Shougang food chain, ie, President.

There are some obvious advantages, given Cia Minera is in Chile.

1. Australian Regulators cannot intervene like they did with Mt Gibson. The ASX is the only regulatory authority over ADY.

1. Brazil is a large Iron Ore producing nation, however they sit on the other side of the continent, and therefore further from China.

When does the visit happen? From ADY, Six senior Shougang executives to Visit Cia Minera Santa Barbara in June 2008

Something to think about...