It is reported by the state government that Anshan Iron & Steel Group, which controls China’s second-largest listed steelmaker, will study building steel plants and iron ore processors in Western Australia.
As we all know that Western Australia is about four times the size of France, produces one-third of the world’s traded iron ore; while China is the world’s biggest consumer of the steelmaking material.
The Chinese company signed a memorandum valid until December 2010 to conduct a study into building “steel plants and rolling mills,” according to a statement from Western Australian Premier Colin Barnett. It’s also “shown interest in iron ore processing” at Mt. Karara, the statement said.
Anshan Steel is planning an iron ore project at Mt Karara with Gindalbie Metals Ltd. to secure supplies of the steelmaking ingredient to feed expanding capacity. Iron ore producers in Australia have sold shares and brought in Chinese investors as they sought funding amid the global credit crunch.
Anshan Steel is also “keen” to play a role in the Oakajee port development, the statement said. Murchison Metals Ltd. and Mitsubishi Corp. are building a A$4 billion ($3.3 billion) port and rail project at Oakajee, which will open up exports of iron ore from the region in Australia’s mid-west.
Anshan and Gindalbie agreed in September 2007 to invest as much as A$1.8 billion to develop the Karara project.
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