China buys nickel mine

State-owned China Metallurgical Corp agreed to pay US$500 million for a controlling stake in the Papua New Guinea Ramu nickel mine project. The deal is part of efforts to ease a raw material shortage for China's stainless steel makers such as Shanghai Baosteel. Australia-based mining company Highlands Pacific, which controls the Ramu project, said China Metallurgical Corp will pay the costs of setting up the mine and will have rights to buy all its output. The mine is the latest in a series of overseas operations purchased by China Metallurgical Corp.