Baosteel acquires 15-per cent stake in Australian iron ore miner Aquila Resources
28 Aug 2009
China's largest steelmaker Baosteel has made a strategic investment of a 15-per cent stake in Australian iron ore and coal miner Aquila Resources for $240 million to secure supplies of iron ore, coking coal and manganese.
Baosteel said yesterday that it would invest as much as $240 million in Aquila via a placement of up to 43.95 million shares at A$6.50 a share to acquire the 15 per cent stake.
It wil also appoint its vice president, Dai Zhihao, to the Aquila board.
''This is a transforming event for Aquila. China's largest steelmaker has established a strategic co-operation with Aquila, not only to make a major investment in the company, but also to advance participation in some of the important projects in the company's portfolio,'' Aquila said in a statement yesterday.
''For Baosteel, this represents its first major international strategic investment in a public company and it is an important transaction in Baosteel's strategy to secure long-term supply of critical steel raw materials for its steelmaking business,'' the statement added.
The deal with Baosteel will help the Perth-based Aquila to fast track the development of its key iron ore, coal and manganese projects.