China’s Valin steel eyes overseas iron ore mines

China’s Valin steel eyes overseas iron ore mines
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First Published: Tue, Apr 24 2007. 11 44 AM IST
Updated: Tue, Apr 24 2007. 11 44 AM IST
Beijing: Hunan Valin Iron and Steel Group wants to invest in iron ore mines overseas, possibly together with partner Arcelor Mittal, the world’s largest steel maker, Valin’s top executive said on 24 April.
The company would probably fund the investment through its own capital and loans from the China Export-Import Bank, said Li Xiaowei, group chairman, on the sidelines of a conference organised by Metal Bulletin.
He said Valin, China’s 10th largest steelmaker, was looking in Brazil, Australia and South Africa.
Arcelor Mittal owns a minority stake in Valin’s listed arm of about one third.
Chinese steel makers are increasingly eager to source secure iron ore supplies in the face of fluctuating spot prices and rising term prices offered by the world’s top three miners.
Li added Valin’s steel production could reach 11 million tonnes of crude steel this year, up about one-tenth on 2006, and so raising its listed arm’s profit.
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First Published: Tue, Apr 24 2007. 11 44 AM IST
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