Wuhan Iron & Steel Co (WISCO) is investing A$180 million ($127 million) to buy a 50 percent stake in five iron ore mining projects owned by Australian miner Centrex Metals Ltd.

WISCO, one of China's largest steelmakers, would also pay an additional A$9.7 million for a 15 percent stake in Centrex, the Australian firm yesterday said in a statement to the Australian Stock Exchange.

Citic Securities analyst Zhou Xizeng termed the deal 'a good news' and said it would be beneficial for WISCO's iron ore supplies in the long run.