Shanghai Securities News citing a spokesman from Aluminum Corporation of China that Baosteel Group, the parent of Baoshan Iron and Steel and China Railway Construction Corporation have signed an agreement to jointly participate in the exploration of an iron ore mine in Guinea which has Aluminum Corporation of China and Rio Tinto as its investors.
According to the spokesman Baosteel Group and China Railway Construction Corporation will only participate in the construction of infrastructure such as ports and railways and will not dilute the stake held by Aluminum Corporation of China in the iron ore mine. According to an agreement signed in July 2010, Aluminum Corporation of China will invest USD 1.35 billion in return for a 47% stake in the iron ore project, upping its stake in the iron ore mine to 50.35%.
The iron ore mine is expected to be operational in five years, yielding annual iron ore output of 70 million tons. Shares of Aluminum Corporation of China rose 0.5% to close the morning session at CNY 7.97 per share today