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Hebei Iron & Steel Group Co Ltd, whose steel production ranked first in China over a series of years, has been approved by the National Development and Reform Commission to subscribe some shares of Kami Iron, a branch of the Alderon Iron Ore Corp.
Alderon Iron Ore Corp is an iron ore exploration and development company in Canada, which is listed on the Toronto Stock Exchange and the New York Stock Exchange. According to the cooperation agreement between Hebei Iron & Steel and Alderon, the two companies will cooperate to develop Kami Iron Ore, a subsidiary of Alderon. Hebei purchased 25 percent of the equity of the Kami project at the cost of 665 million yuan and has priorities to purchase 60 percent of the ore.
Kami Ore is located on the Labrador mining area, a major ore area in Canada, which contains about one billion tons of iron ore and has good water supply, electricity and harbor traffic. The project will begin by 2015 and the estimated production is 8 million steel powders each year.
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