Steel major eyes stake in Australian firm

SHANGHAI: China's largest steelmaker Baosteel Group may buy a stake in Australian iron ore miner Fortescue Metals Group Ltd to ensure stable raw materials supply.

"Baosteel will seek a stake in Fortescue when both sides reach an accord on a number of things, including common goals, development strategy and market positioning," said Xu Lejiang, chairman of Baosteel Group, yesterday at Baosteel's Majishan Port in Zhejiang province, where he received its first shipment of 170,000 tons iron ore from Fortescue.

Baosteel signed a 10-year iron ore supply contract with Fortescue in February last year under which it will get 20 million tons of ore every year.