Shougang, Mount Gibson ink mining pact
China's fourth largest steel maker, Beijing-based Shougang Group, signed a mining deal with Western Australian Mount Gibson Iron Ltd. According to the agrement, Shougang's Hong Kong subsidiary will assist Mount Gibson in developing its magnetite deposit in Western Australia. Shougang also promises to buy 2.5 million metric tons of magnetite every year for the twenty year life of the mine. Asia Iron, in which Mount Gibson holds a 64% share, also promised to buy the same amount of magnetite every year. Furthermore, Shougang will invest $210 million in expanding the shipping facilities of the deposit, while Asia Iron will invest $15 million.