Update On China's Mineral Ventures Overseas:
Update on China's mineral ventures overseas:
Australia: The Anshan Iron and Steel Group Corporation (Angang) has entered into an agreement to purchase a 12.94 percent stake in Western Australian iron ore group Gindalbie Metals Ltd., which is also Angang's current joint venture partner on the Karara Project. Gindalbie has agreed to issue 65 million shares to Angang in order to raise AUD $39 million (US$ 32.43 million), making Angang the second largest shareholder in Gindalbie.
Angang, one of the largest steelmakers in China, currently produces 22 million tons of crude steel per annum, and is set to produce 30 million tons by 2010.
Gindalbie, an Australia-listed mid-tier iron ore company founded in 1994, intends to become a leading supplier of high-grade magnetite concentrate and quality pellets to the global markets, and in particular the rapidly expanding Chinese steel industry.
South Africa: Maanshan Iron and Steel Co. Ltd., a Shanghai-listed Maanshan Iron and Steel Group subsidiary, has entered into a 10-year off-take agreement with South African-based Kumba Iron Ore *, According to a Maanshan Steel spokesperson, the company currently imports over 10 million tons of iron ore per annum, mainly from Australia and Brazil.
Tanzania: Sichuan Hongda Industry Group plans to develop mineral resources in Tanzania, in particular exploiting deposits of lead, zinc and gold.
Privately-owned Sichuan Hongda established a mining company in Tanzania last year that has a registered capital of $10 million, which is engaged in infrastructure construction and includes a seaport.
[source: Interfax China Metals, June 8 2007]
* Editorial note: Kumba Iron Ore is 65% owned by UK-based Anglo American plc.