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Baosteel Opens Mining Company in Australia

A joint venture mining company in Australia partly owned by the Shanghai Baosteel Corporation has started operation, the corporation announced in Shanghai Wednesday.

The mining company, located in western Australia, is a joint venture between the Shanghai Baosteel Corporation and Rio Tinto Co, one of the three largest mineral providers in the world. Baosteel holds 46 percent of the stake while the remainder was held by the Australian company. The term of the joint venture is 20 years.

At present, the mining company produces 10 million tons of iron ore annually. According to the contract, Australia is to provide 200 million tons of iron ore to Baosteel in the cooperation period.

Xie Qihua, board chairman and general manager of the Baosteel, said the join venture began production three months ahead of schedule. The Australian side can take advantage of Baosteel's sales and logistics network to lower business cost and expand development in China.

Both sides expressed they would strictly abide by the agreement and run well the joint venture to turn the mining company into one of the most competitive one in the world.

Apart from the joint venture, Baosteel had joined hands with Brazil in exploiting ironstone in Brazil.

(Xinhua News Agency April 22, 2004)

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