By Wan Zhihong (China Daily)
Updated: 2008-03-05 10:47

State-owned metals trader China Minmetals Corp yesterday said it has set up an iron and steel joint venture in India, the first major Chinese investment in the country's steel industry.

The facility, built by China Minmetals with Xinxing Pipes Group and three Indian companies, will have an annual production capacity of 2.5 million tons of steel and 6 million tons of iron ore pellets, a company statement said.

The project's first phase will involve a total investment of $72 million. It will be 55 percent owned by the Chinese companies and 45 percent owned by their Indian partners, the statement said.

Industry analysts said China Minmetals wants to cash in on rising demand for steel products in India, one of the fastest growing markets in the world.

Last week, China's top iron ore trader Sinosteel Corp said it plans to build a steel plant in India.

China Minmetals earlier this year said it bought Canadian firm Northern Peru Copper, thus acquiring the El Galeno copper and gold mine and Hilorico gold mine in northern Peru.

The acquisition was conducted by Copper Bridge Acquisition Corp, jointly established by China Minmetals and Jiangxi Copper Corp. It paid $460 million for the purchase.

The Northern Peru Copper's total resources volume includes 8.05 million tons of copper and 198 tons of gold. That includes 7.41 million tons of copper and 165.7 tons of gold stored at the Galeno copper and gold mine.

China Minmetals has also joined forces with the world's sixth largest copper supplier, Poland's KGHM Polska Miedz SA, to develop non-ferrous metal resources at home and abroad.

It is also cooperating with Chile's Corporacion Nacional del Cobre to ensure a long-term supply of refined copper.

In 2007, the company posted profits of 6.8 billion yuan, about double that of the previous year. Its revenue was $21.8 billion in 2007, compared with $18.9 billion in 2006.