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China-US Cooperation on Steel Production Bring Jobs to Minnesota(31/03/04)

 

Chinese steel producers are striking deals with foreign suppliers to ensure steady sources for such materials as iron ore, the Wall Street Journal reported on March 31.

According to the report,one deal made in recent months will supply China's steelmakers with iron ore from North America. A shuttered Minnesota mine was reopened late last year under a new ownership agreement between Chinese steelmaker Laiwu Steel Group Ltd. and Cleveland-Cliffs Co., an Ohio mining company. The two companies agreed to buy EVTAC Mining Co., which had filed for Chapter 11 bankruptcy-court protection and laid off about 400 workers. Laiwu holds a 30% stake, while Cleveland Cliffs owns 70% in the operation, now called United Taconite.

Under the agreement, Laiwu will own 30% of the 3.9 million metric tons produced annually at the mine, but will receive its taconite pellets, which are made from iron ore and used to make steel, for the next 12 years from a Cliffs' mine in eastern Canada because it is easier to ship from there.

     

 


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