China’s Hebei Steel to invest in Canadian iron firm

The National Development and Reform Commission approved Hebei Iron & Steel Group’s (000709.SHE) bid to invest US$195 million for a 20% claim in Canadian minerals company Alderon Iron Ore (TUV3.FRA, ADV.TSE, ADV.CVE), as well as a 25% stake in Alderon’s Kami mining project, Reuters reported. The investment will allow Hebei Steel, China’s largest steel producer, to purchase 60% of the Kami project’s annual iron ore production. The project is expected to have an annual output of 8 million metric tons by 2015. The deal with Alderon comes as Chinese steel producers try to take more control over their iron ore suppliers. To that end, the Chinese government is encouraging steel mills to source at least half of their iron ore requirements from suppliers with some Chinese investment by 2015.