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Print[Ferro-Alloys.com] Hebei Iron & Steel Group, China's largest steel producer, has been given the go-ahead to invest in Canadian iron-ore developer Alderon Iron Ore Corp , the official Xinhua News agency quoted local authorities as saying on Sunday.
Hebei Steel said in April that it would invest about C$194-million ($195-million) for a near 20% stake in Alderon and a 25% interest in Alderon's principal asset known as the Kami project, located in Canada's Labrador Trough.
The deal would also give Hebei the right to buy 60% of yearly iron-ore produced from the Kami project.
The investment has gained approval from the country's top economic planning body, the National Development and Reform Commission (NDRC), Xinhua said, quoting a statement released by the NDRC's branch in Hebei province.
The Kami project has a proven reserve of about one-billion tons, with an expected yearly output of 8-million tons after it goes into production in 2015, Xinhua said.
The deal is part of efforts by Chinese steel producers to gain more control over foreign iron-ore supplies, dominated by a handful of global miners.
China's steel mills have been urged to source at least half of their iron-ore imports from Chinese-owned or invested projects by 2015, according to a government plan issued last year.
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