China steelmaker Sinosteel increases Australian iron ore stake after merging with Baowu Steel

Chinese steel producer Sinosteel is doubling down on the Australian iron ore market with a deal to buy half of Australian-listed explorer Fenix Resources’ production just days after being taken under the wing of mega Chinese steelmaker China Baowu Steel Group.

Fenix agreed on Wednesday to sell 50 per cent of the production at its new Iron Ridge mine in Western Australia to the Chinese group. The other half will go to Hancock Prospecting’s Atlas Iron, which is owned by Australia’s richest woman, Gina Rinehart.

Fenix’s Iron Ridge, which was approved for development in September, is expected to produce about 1.25 million tonnes of iron ore a year. Production at the mine is scheduled to start later this year, with the first shipment scheduled for early 2021.