China eyes Canadian ore with Bloom Lake deal

Mar 30, 2009 | 11:46 AM | Mick Bowen

China's Wuhan Iron & Steel Corp. (Wisco) will pay $240 million for a 19.9-percent equity stake in Canadian iron ore junior Consolidated Thompson Iron Mines Ltd., in a move one analyst said could signal a new trend of Chinese investment in the sector.

Wisco, China's third biggest steelmaker, will also gain a stake of no less than 25 percent in the Bloom Lake iron ore mine in Quebec as part of the deal.

"At the end of the day, these guys are after the off-take agreements," said mining analyst Peter Campbell at Jennings Capital Inc.. "The Chinese have been buying a lot of resource assets, first in Australia and now in Canada. It's part of the trend."....

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