On March 1, Chinese steel producer Hebei Steel disclosed that it is negotiating with a Brazilian iron ore enterprise regarding an iron ore development project with a total investment amounting to $6 billion. Hebei Steel is currently seeking to obtain a large share in the Brazilian company.
"Currently, negotiations are in process and it is not clear whether Hebei Steel will become the sole shareholder or holder of just part of the shares," a Hebei Steel official stated. Before the negotiation with the Brazilian company in question, Hebei Steel had already reached an agreement with Australian iron ore company AuroxResources for the supply of 3 million mt of iron ore per year to the Chinese mill.
Hebei Steel had also negotiated with Aurox with a view to acquiring a stake in the company, though without success. Thus, Hebei Steel has now switched its focus with regard to stake acquisition from Aurox to the Brazilian company.
So far, no detailed information has been disclosed regarding the investment with the Brazilian company. Meanwhile, Hebei Steel has also revealed that it is now seeking investment opportunities regarding coke supplies in Ukraine and Mongolia, so as to ensure the company will have a sufficient supply of raw materials for its further development.