China turns to mining ventures Perth February 27, 2006
CHINESE industrial giant Sinosteel has revealed a $3 billion war chest to kickstart new overseas mining ventures, including in Australia, as China tries to escape the dominance of iron ore heavyweights BHP Billiton, Rio Tinto and Brazil's CVRD.
The revelation comes as Chinese steel makers hold out against another likely big increase in iron ore prices this year, warning that miners were putting at risk their relationship with the world's biggest ore importer.
It also comes as Sinosteel-backed junior Midwest Corporation loads the first shipment from its new Koolanooka hematite mine, east of Geraldton in Western Australia, for delivery to the conglomerate next month.
Speaking on the sidelines of the AJM Iron and Steel conference in Perth, Sinosteel Australia managing director Xiaofei Cui said China was eager to identify and control new supplies of raw materials.
To that end, Sinosteel, which last year traded more than 20 million tonnes of iron ore, had already secured two bank facilities giving it $3 billion for new mining ventures, Mr Cui said. How much was invested in Australia would depend on the quality of opportunities brought to Sinosteel.
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