Anshan Iron and Steel Group (Ansteel), one of the country's top five steelmakers, will study building steel plants and iron ore processors in Western Australia, the latest attempt by Beijing to expand its sources of raw materials.
The Liaoning-based steelmaker signed a memorandum of understanding with the Western Australian government to conduct 'a feasibility study of steel plants and rolling mills' at the Oakajee industrial estate, near Geraldton in the Mid West region.
The accord followed a visit by Western Australian premier Colin Barnett to Liaoning province last week. Ansteel, which is a major shareholder and joint-venture partner of Australian ore explorer Gindalbie Metals, will work with Western Australia's Department of State Development to conduct the study, according to a statement posted on the state government's website.
Ansteel has a 36 per cent stake in Gindalbie and is jointly developing with that firm the A$1.8 billion (HK$11.49 billion) Karara iron ore project to secure supplies of the steelmaking ingredient to feed listed flagship Angang Steel's expanding capacity.
Garret Dixon, Gindalbie's chief executive, said his company would 'pursue further opportunities for iron ore processing and value adding' of the Karara project.
'Ansteel's move has shown that mainland steelmakers are not only going abroad to seek supply and control of resources but are also trying to build mills in countries that have abundant raw materials,' said Zhao Zhicheng, an analyst at Essence Securities.
