SinoSteel to acquire stakes of ZCE in Zimbabwe

SinoSteel Corp, China's second largest iron ore dealer, has agreed to pay US$200 million to acquire 50% stake of Zimasco Consolidated Enterprises (ZCE), a subsidiary of the largest ferrochrome producer Zimasco Ltd in Zimbabwe, according to Shanghai Daily.

Zimasco owns the largest chrome ore resources in Zimbabwe and its chrome ore reserve is 4 or 5 times that of China. As ferrochrome is one important material to combine iron and chromium in the production of steel, SinoSteel has inked contract with Zimasco to invest in ferrochrome mines and smelters.

State-owned SinoSteel is expanding into making materials such as ferroalloys used in steel producing, in order to meet the growing demand in China for steel. It has successfully taken over Jilin Ferroalloys Group Corp, China's largest ferro-alloys firm after its acquisition of Zuyi Ferroalloy Factory.

The company is also planning to list on both Shanghai and Hong Kong bourses next year to raise US$1.5 billion to fund further exploration.