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Hebei Steel Invests in Canadian Iron Ore Miner
07/09/2012 - Hebei Iron & Steel Group Co. received approval from China’s National Development and Reform Commission to invest in Canadian iron ore developer Alderon Iron Ore Corp.
Hebei Iron & Steel Group Co. received approval from China’s National Development and Reform Commission to invest in Canadian iron ore developer Alderon Iron Ore Corp.
Hebei Steel, the largest steel producer by output in the country, said in April that it would invest C$88.3 million (US$88 million) for a 19.9% stake in Alderon and spend C$105.7 million (US$105 million) on Alderon's 25% interest in the Kami project, according to China Business News on 9 July.
The project, located in Canada's Labrador Trough and with water, power and port facilities, has iron ore reserves of about 1 billion tons, with an expected output of 8 million tons after it is put into operation in 2015.
Hebei Steel will have priority rights to buy 60% of the annual iron ore output from the project.
According to the company's plans, it will own total resources of 7.2 billion tons domestically and 800 million tons abroad by the end of 2015, aiming to raise its iron ore self-supply percentage from the current less than 9% to 40%.
