Wuhan has more resources than any other steelmaker worldwide

Now that it has penned deals with two Canadian iron companies, Wuhan Iron and Steel (Group) Corporation (WISCO) has control over billions of tons resources, which makes it the steel manufacturer with the most resources in the world.
WISCO signed a deal with Canadian Adriana Resources Inc. to take a stake in an iron ore project in Lac Otelnuk, Quebec. It is the latest example of a Chinese company buying overseas assets to guarantee iron ore supplies.
In January, WISCO and Adriana signed a binding framework agreement under which Wuhan will pay 120 million Canadian dollars for a 60 percent stake in a joint venture that will develop the Lac Otelnuk project. The deal will give WISCO a 20 percent stake in Adriana through a private placement and the right to nominate a director to Adriana's board.
Lac Otelnuk has reserves of approximately 6 billion tons of medium grade iron ore, but mining costs are low. Also, Adriana has iron ore assets in Brazil and Canada and sees China as its main market.
On Feb. 17, 2011, WISCO agreed with Canada's Century Iron Mines Corp. to jointly develop mining projects as it seeks to cut its reliance on ore purchases from the big three iron producers BHP Billion Ltd., Rio Tinto Group and Vale SA.
Spot prices for iron ore arriving in China's Tianjin port have surged 50 percent in the past year, according to the Steel Index. WISCO wants to be "self-sufficient" in iron ore supplies in three to five years and reduce dependence on overseas suppliers, General Manager Deng Qilin said in a Bloomberg report.
WISCO has now invested in eight iron ore projects spanning the globe in Canada, Brazil, Australia, Liberia and Madagascar. It has secured "billions of tons" of iron ore resources, making it owner of the most mining resources among global mills, according to a company statement.
Wuhan Steel plans to boost steel production capacity from 40 million tons to 60 million metric tons in 2011-2015, company representatives said in July. It made 36.6 million tons last year.
By People's Daily Online