China plans to purchase overseas iron ore assets to obtain half of its iron ore imports from Chinese-invested overseas mines.
With this target, the China Iron & Steel Association (CISA) plans to capture an $80bn iron ore import market back from a few global players.
CISA vice-chairman Luo Bingsheng said that the company’s strategy is to gain about 40% of the iron ore imports from offshore ventures by 2015.
China plans to combat the effect of its low-quality iron mines and the dominance of a few global miners with the increasing strength of the Chinese yuan, which favours the acquisition of more ore assets overseas.
Recently, Aluminum Corp of China (ACH) made an agreement with Rio Tinto to develop Simandou iron ore mining project in Guinea and Wuhan Iron & Steel Group has signed deals to acquire Canadian iron ore assets.