Chinese steelmaker Hebei Iron and Steel Group is currently negotiating with Australian iron ore producer Atlas Iron Ltd for the acquisition of a stake in Atlas' Ridley magnetite mine in Western Australia, according to inside sources.
The Chinese steel producer was previously in talks with Aurox Resources to acquire a stake in the Ridley mine, but no actual agreement was reached. In March this year, Atlas announced its plans to buy Aurox Resources.
Ridley is expected to produce 15 million mt of iron ore per year over the next 35 years.
Hebei Iron and Steel Group started to look for overseas iron ore resources earlier this year.