China's National Development and Reform Commission (NDRC) published an announcement on its website on May 24 approving two overseas acquisitions by domestic steelmaker Wuhan Iron and Steel Group (WISCO). The NDRC has cleared WISCO's acquisition of the Soalala iron ore deposit in Madagascar in a joint venture with two other companies as well as the company's acquisition of a stake in a Liberian iron ore project. The two deals concern over 2 billion mt of iron ore deposits.
The exploration license for the Soalala iron ore project was granted to Hong Kong-based Wisco Guangxin on May 8, a joint venture company 42 percent owned by WISCO, 38 percent by Guangdong Foreign Trade Group Co and 20 percent by Kam Hing International Holdings, according to a statement released by Hong Kong-based Kam Hing International Holdings.
The project, which involves an area of more than 430 square kilometers and contains more than 800 million mt of exploitable reserves, is expected to be commissioned by 2012.
WISCO also signed an agreement on March 12 to pay China-Africa Development Fund $68.46 million for a 60 percent stake in China Union Investment Co, which owns an iron ore deposit located in central Liberia. The project is the largest overseas investment in Liberia, with a deposit of 1.31 billion mt of iron ore reserves and is connected to ports via an 80-kilometer railway.