Sinosteel seeks Australian approval

Sinosteel Corp, China's second largest iron ore trader, is seeking Australian approval to take a "substantial" stake in Murchison Metals Ltd, which may allow it to control a A$3 billion ($2.9 billion) mining project.

The Treasury will study Sinosteel's plans to buy a "substantial shareholding" and Murchison's assets for 90 days, according to a government gazette. Sinosteel owns 2.4 percent of the Perth-based iron ore producer, and is offering A$1.36 billion for Australian mining rival Midwest Corp.

Taking control of both companies may enable Sinosteel to speed up the building of mines and a port to export to China, the world's largest consumer of iron ore.