Guangdong province-based privately-owned automobile manufacturer Shunde Rixin Development Co. Ltd. (Rixin) has purchased over 70 percent of the exploration rights to a 3 billion mt iron ore deposit in Chile, various Chinese press sources reported.
Local media commented that the buy-out, which awakened a lot of public attention, is raising hope of a breakthrough in deadlocked talks over the iron ore prices, stressing that the area has one of the largest reserves.
Pointing out that in the next five years, the area is expected to provide 10 percent of China's total iron ore imports, chairman of the company Li Zihao reportedly said, "We acquired a 70 percent stake. Now we have both the right to mine and the right to set prices."
He said: "This deal will only affect price talks if the output is massive. At present, China doesn't own mining rights overseas. So prices are controlled by foreign companies. But if we hold a big reserve, we can decide on the price to sell in our market. And if foreign companies don't follow suit, they will lose part of the market share."