In an interview with Chinese weekly newspaper Economic Observer, when asked how Chinese steel giant Baosteel coped with surge in iron ore costs and made such a huge profit in 2010, Baosteel chairman Xu Lejiang stated that the company had spent the seven years from 2001 to 2007 investing overseas in iron ore mining assets.
Mr. Xu stated that Baosteel still intends to acquire further iron ore assets, in Africa, Canada and South America. It is also seeking iron ore suppliers from miners other than the big three mining companies in an effort to break the current monopoly. He added that their efforts seem to be working.
Baosteel accounted for 26 percent of total profits of China's large and medium steel companies in 2010.