It is learned that Chinese Hebei Iron & Steel Group will lead a group to buy Palabora Mining in South Africa which belongs to Rio Tinto by US$476 millons.
Rio Tinto will sell 57.7% of Palabora for US$373 million to Hebei Iron & Steel Group, and Anglo American will divest a 16.8% of its share for US$103 million to the Group.
Palabora's main asset is copper mine, besides, the company also produces vermiculite and magnetite.
The Chairman of Hebei Steel Wang Yifang said in a statement that South Africa offers significant long-term investment opportunities.
According the analyst, Chinese steelmakers are diversifying to mining as they are struggling to make profits in the steel business.