Wuhan Steel Group, China's third largest steelmaker, announced Thursday that the company is pursuing a joint venture to develop mining projects with Canada-based companies Century Iron Mines Corp and Adriana Resources.
Additionally, Wuhan has made a deal with the latter to take an approximate 20 percent stake in Adriana via a private placement.
Century Iron's three iron ore projects in Quebec will help support Wuhan's strategy of self-sufficiency when it comes to iron ore supplies, lessening the company's dependence on overseas suppliers. Already, Wuhan is invested in eight iron ore projects, in Canada, Brazil, Australia, Liberia and Madagascar, providing the company with billions of iron ore tons.
According a company statement, Wuhan plans to increase steel production capacity to 60 million metric tons in the next four years, compared to current levels of 40 million tons.