Sao Paulo, Brazil, 14 March – Chinese steel maker Sinosteel, which supplies raw materials and services for Chinese plants, wants to establish partnership with Brazilian companies for iron ore mining in Brazil, according to Brazilian financial newspaper Valor Económico.
Weixian Zhang, the chairman of Sinosteel Brasil Metalúrgica Trading, said that the targets of negotiation were companies that are less known on the market and which are located in North eastern Brazilian states such as Bahia, and in the North, such as Amapá.
Weixian said that Sinosteel could conclude some surveys and research on mining projects by the end of 2008 and noted that the group was interested in iron ore, manganese and nickel ore.
Weixian declined to give figures for what the group planned to invest in Brazil, but said that it would not be a small amount.
In China, the company imports between 25 million and 30 million tons of iron ore to supply Chinese steel makers. Of this total, 10 million come form a partnership that Sinosteel has in Australia.
The Chinese company plans to repeat that formula with partnerships in Brazil.
Weixian projected that in 2008 China would produce 500 million tons of steel, exceeding the 489 million tons produced in 2007, an amount which shows a need for at least 750 million tons of iron ore, as for each ton of steel 1.5 tons of iron ore is required.
Sinosteel, a state company, is in the process of becoming listed on the Shanghai stock exchange. (macauhub)