Wuhan Iron and Steel Corp (Wusteel) has signed a mining development cooperation agreement with Canadian Century Iron Mines.
The partnership will exploit the Canadian company’s iron ore projects in North America. It was the latest move in the Chinese steelmaker’s overseas mining expansion.
Wusteel will take advantage of the abundant iron ore resources of Canadian Century, while providing financial support, technical expertise and human resources to the partnership.
Wusteel received regulatory approval from the Canadian government to take the stake in Canadian Century, a junior company that operates the mineral properties Duncan Lake, Attikamagen, and Sunny Lake in Quebec.
To secure iron ore supply, Wusteel has been taking stakes in overseas mines, in addition to buying the raw material from the three global mining giants, Vale, Rio Tinto and BHP Billiton.
In addition to Canadian Century, Wusteel is also in close cooperation with Canadian miners including Adriana Resources and Consolidated Thompson Iron Mines.
The company received, in last August, the first shipment of iron ore from its $400M investment in the MMX Brazilian mine, which placed the Chinese steelmaker as the second-largest shareholder of MMX and secured a 20-year iron ore purchases and sales agreement.