BEIJING: China should boost investment in overseas iron ore mines to counter the "international monopoly" on seaborne trade in the raw material used to make steel, an industry association said Thursday.
The China Iron and Steel Association said domestic companies should increase their stakes in ore mines around the globe, according to a statement, as the world's largest consumer of iron ore seeks to reduce its import bills.
"To counter the international monopoly on seaborne trade of iron ore, China needs to increase investment in overseas iron ore mines, develop, take shares and further increase their interests in overseas mines," it said.
The statement did not provide a target, but Dow Jones Newswires quoted CISA vice chairman Luo Bingsheng as saying Wednesday that China would seek to derive 40 percent of ore imports from Chinese-invested sources by 2015.
Beijing has long complained that the iron ore industry is dominated by three players, Anglo-Australian miners Rio Tinto and BHP Billiton, and Brazil's Vale, which gives them the upper hand on prices.
In 2009 and 2010, CISA was involved in a spat with the three miners over pricing, and four Rio Tinto executives were jailed in China on bribery and trade secrets charges.
It was not immediately clear what percentage of China's iron ore imports currently come from mines part-owned by Chinese companies.
China imported 618.6 million tonnes of iron ore last year, down 9.1 million tonnes from 2009. But the cost increased to $79.4 billion, up $29.3 billion as global commodity prices soared.
The comments sent shares in Chinese iron ore miners higher in the morning session, outstripping a 0.28 percent rise in the broader market.
Minmetals Development Co was up 0.62 percent at 31.0 yuan, while Shandong Jinling Mining Co jumped 2.77 percent to 24.11 yuan.
Bengang Steel Plates, a steel producer with iron ore mines in northeastern China, climbed 1.82 percent to 6.71 yuan.
Chinese companies have been investing heavily in iron ore mines in Australia, Africa and South America.
In July, the listed unit of Chinese miner Chinalco and Rio Tinto signed a binding agreement to jointly develop a huge African iron ore field, with the Chinese company to invest $1.35 billion in the project.
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