Hiap Teck Ventures (HTV) subsidiary Eastern Steel has unveiled a 600ha mining concession for iron ore in the Bukit Besi area of Terengganu, Malaysia.

The 2,400ha Bukit Besi area holds 50Mt of iron ore reserves.

The announcement was made as Eastern Steel broke ground at its 1,200-acre site steel complex, which was built with an investment of MYR1.8bn ($576.2m) in Kemaman.

The first phase of the complex, which will be built with an investment of MYR754m ($ 241.39m), will be complete in 2013.

The second phase will involve a further investment of MYR1.05bn ($336.16m) and is scheduled to be completed ten months after phase one, reports thestar.com.

HTV has a 55% stake in Eastern Steel, while China Shougang Group has a 40% stake and Chinaco Investment has 5% stake.

China Shougang unit Shougang Singapore will take up a private placement of 32.2 million new shares, equivalent to a 9.84% stake in HTV.