SteelOrbis Shanghai
The price declines in the iron ore market have not stopped the big Chinese steelmakers from going abroad to exploit overseas mines. Recently, during its visit to Mozambique and Madagascar in Africa, Wuhan Iron & Steel Co. (WISCO) signed an agreement with Madagascar for the exploitation of iron ore mines in the country in collaboration with Hong Kong-based Kam Hing International Holdings Ltd.
At the end of 2007, Kam Hing Group obtained both prospecting and exploitation rights for an area of 287 square kilometers in the Bekisopa region in Madagascar. WISCO and Kam Hing Group subsequently established a joint venture for the exploitation of iron ore in the region in question. Kam Hing Group holds 40 percent shares in the joint venture in question along with its prospecting and exploitation rights in the Bekisopa region; WISCO owns the remaining 60 percent of shares and will provide backing with its capital and technology.