Wuhan Iron and Steel Group Co
Wuhan Iron and Steel Group Co (WISCO) was founded in 1958 in Qingshan, Wuhan, Hubei, China. WISCO was China's first 'supergiant' iron and steel complex, and annually the company produces ten million tons of iron and steel each.
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Wuhan Iron & Steel to invest US$240m in Quebec iron ore miner
Wuhan Iron and Steel Corporation, one of China's biggest steelmakers, is to invest US$240m in Consolidated Thompson Iron Mines Ltd, a mining company developing the Bloom Lake iron ore deposit in Quebec, according to a statement from Consolidated Thompson.
Bloom Lake is a 640m MT Iron Ore Deposit, with a grade of approximately 30 percent iron. Based on an April 2007 study, its mine life is 34 years, according to Consolidated Thompson. Wuhan is to invest US$240m in Consolidated Thompson, for 29,748,897 shares, or a 19.9 percent stake in the company.
Wuhan will also take at least a 25 percent interest in a new company being established to operate the Bloom Lake mine, and will commit to purchasing around a quarter of its production.
The company will also be entitled to other long-term off-take rights from the Bloom Lake project, as well as from the other Peppler Lake and Lamelee mines. Wuhan will nominate a director to Consolidated Thompson’s board.
President and CEO of Consolidated Thompson, Richard Quesnel, said the Wuhan investment will allow the company to expand its production from 8 million MT to 16 million MT.
"We view this investment as a key strategic step in developing a long-term partnership with an important consumer of iron ore, that is one of China's largest and most technologically advanced integrated steel groups," said Quesnal in a statement.
