china-acquires-control-of-australian-iron-ore-producer

China acquires control of Australian iron ore producer

The deal signed between Mount Gibson Iron in Australia and ChinaÆs Shougang Group might be small, but it is part of a wider Chinese plan to gain greater control of global iron ore prices.
ChinaÆs third largest steel producer, Shougang Group, has bought a controlling stake in a yet-to-be-approved iron ore project in the middle of Western Australia.

The 73% stake in Asia Iron Holdings was puchased from Mount Gibson Iron Limited for A$52.5 million and could provide one million tonnes of magnetite iron-ore concentrate to ShougangÆs steel mills each year.

The Mount Gibson deal is another move by the Chinese to take control of iron ore supply and be less exposed to global price fluctuations. The worldÆs three biggest miners û BrazilÆs CVRD and AustraliaÆs Rio Tinto and BHP Billiton û currently account for 70% of global exports.

While the deal with Shougang was being inked this week,...
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