Wuhan Iron and steel shares investment 800 million and Canadian ADI Resources company joint Venture Mining

Wuhan Iron and Steel (group) Company (hereinafter "Wisco"), which has acquired mineral resources in Australia, Brazil and Canada in the past two years, has expanded new projects in Canada.　　"The first financial daily" learned from Wisco yesterday, the company and the Canadian Adi Resources company in Wuhan signed a Mineral resources cooperation project to further enhance the supply of iron and steel ore resources to protect the capacity. Adi Resources is a Canadian gem listed resource companies, in January this year, the two sides signed a binding framework agreement, WISCO will invest 120 million Canadian dollars (equivalent to 802 million yuan), thus in the development of LACOTELNUK projects in the joint venture to occupy 60% of the shares,　　The ADI resources company will also receive a 19.9% per cent stake in Adi Resources and may appoint a director. An insider told our correspondent yesterday that the signing of the Mineral Resources cooperation project is in fact the confirmation of the framework agreement signed between the two sides one months ago, and discuss the details of the specific cooperation.　　However, the cooperation between the two sides also requires the approval of both governments. Lacotelnuk iron ore is located in Quebec, Canada, the grade of about 30%, the variety of magnetic concentrates, reserves of about 6 billion tons.　　Although the grade is general, but the cost of mining is lower.　　ADI resources, which now have iron ore resources in both Brazil and Canada, aims to become a fully integrated iron ore producer, while China is the main target market for Adi resources.　　According to the agreement between the two sides, after carrying out the feasibility study, WISCO will also seek 70% or so loans for the project development funds, before the ADI Resources company disclosed that the development of the Lacotelnuk project required about 600 million Canadian dollars. In fact, this is not the first investment of WISCO in Canada.　　In July 2010, Wisco invested 240 million U.S. dollars to acquire ownership of the common shares of CLM2970, another Canadian iron ore company, with a 19.9% per cent stake in the contract.　　Wuhan Iron and steel related people pointed out that, compared to other countries, Canada's investment environment is more relaxed, Canada's mining investment environment for Chinese enterprises are attractive, especially in emerging mines, the world's 50% of exploration funds are obtained through the Canadian exchange.　　Deng Shilin, general manager of Wisco, said after the signing, Wisco in speeding up domestic development at the same time, has been actively promoting strategic cooperation with overseas enterprises, the signing is conducive to the protection of iron and steel ore resources supply, opening up new profit growth points. and Adi Resources Company's chairman and CEO Allen Pamir also pointed out that Wisco has a large number of steel production technology and ore mining and selection of core technology and mine construction team, and rich in mining exploration and development of technical advantages and rich experience.　　At the same time, Wisco has a long-term and stable demand for mineral resources, so it is a good long-term strategic partner. Wisco has been looking for suitable acquisitions around the world since the financial crisis broke out, and Wisco is "going out" to invest in the mining industry most frequently, compared with other steel giants.Iron and steel enterprises, continuously in Canada, Australia and Brazil layout, and the investment is basically the participation of mining companies and joint ventures in the development of mining projects combined. At present, Wisco has control over 3 billion tons of ore resources globally. According to Wisco's current iron ore investment layout and equity ore situation, WISCO is expected to achieve iron ore self-sufficiency within five years.