Hebei Iron OK'd for overseas investment

SHIJIAZHUANG -- Hebei Iron & Steel Group Co, China's largest steel plant by output, have received greenlight from the nation's top economic planning agency for its interest purchase in a Canadian iron ore project, local authorities said Sunday.

The investment has gained approval from the National Development and Reform Commission, the Hebei provincial development and reform commission said in a statement.

Earlier in April, Hebei Iron & Steel signed an agreement to acquire a 25 percent interest in the Kami project of Canadian Alderon Iron Ore Corp.

Upon acquisition, Hebei Iron & Steel can buy 60 percent of the annual output from the Kami project with a discount and has the option to purchase more without such discount.

The Kami project has a proven reserve of about 1 billion metric tons. It is expected to have an annual output of 8 million tons after being put into operation in 2015.