Shougang Concord International Enterprises, emerging from its failure to buy a stake in Australian iron ore miner Mount Gibson Iron, still aims to acquire mines and related companies at home and abroad, according to company executives.
The Hong Kong-listed flagship of mainland steelmaker Shougang Group will set aside HK$1 billion for capital spending, a major part of which will be used to bid for an iron ore mine and a coal mine on the mainland, deputy managing director Michael Chen Zhouping said yesterday, without giving details.
Managing director Cao Zhong said overseas mine acquisitions would be handled mainly by the listed arm, although its state-owned parent would provide support, adding that such investments would be 'carefully calculated' before any decision was made.
Shougang International earlier this month scrapped its plan to acquire a 19.73 per cent stake in Mount Gibson after Australian regulators rejected the deal.
Mr Cao said the parent company was also in talks with global miners such as Vale, BHP Billiton and Rio Tinto, on possible co-operation in resources projects both on the mainland and overseas, but that it had no plans to buy stakes in these firms.
Shougang International on Wednesday night reported a 532 per cent increase in net profit for last year to HK$1.4 billion, thanks to the surging price of shipbuilding plates and increased production.
