ArcelorMittal, the world's largest steelmaker, and Wuhan Iron & Steel Group are looking to jointly invest and acquire mines as rising prices spur mills to take greater control of raw materials.
Wuhan said a list of possible projects with Arcelor may be drawn up soon.
ArcelorMittal will extend the expansion plans of Wuhan Steel, which has already invested in Brazil and bought iron ore from Venezuela.
Wuhan said that through the joint-exploration ArcelorMittal is seeking to meet its own raw material requirements and secure long-term customers, reports Bloomberg.
ArcelorMittal plans to expand iron ore production capacity by 67% by 2015, increasing it to 100 million metric tons from 60 million tons.
Wuhan Steel is also planning to be self-sufficient in iron ore supplies in three to five years.