Four mainland steel giants, led by Wuhan Iron & Steel, have set up a joint venture to invest in iron ore projects in Cambodia - a move that may make them less vulnerable to rising import prices.
Wuhan Steel, the country's fifth-biggest steel mill operator, owns 50 per cent of the venture, while Baosteel Group, the mainland's biggest steelmaker, holds a 20 per cent stake.
Anshan Iron & Steel Group and Beijing-based Shougang Iron & Steel Group each owns 15 per cent, according to a statement posted on Wuhan Steel's website.
The venture's first project was the exploration and development of mines in Cambodia's Preah Vihear province, the statement said. Preah Vihear has 2.5 billion tonnes of iron ore deposits, according to preliminary figures.
'Steelmakers that don't have their own iron ore resources won't survive the fierce competition in the industry,' said Wuhan Steel deputy general manager Li Fushan.
Mainland mills have been stepping up iron ore exploration and buying stakes in domestic and overseas mines in an effort to reduce their reliance on imports.