Australia has allowed Chinese steel producer Angang Steel Co Ltd to increase its stake in Australian iron ore miner Gindalbie Metals Ltd to 36%, said Wayne Swan, the Treasurer of Australia.

Pursuant to the agreement, Angang Steel will invest in infrastructure development in the mid-west region of Western Australia and allow Australia to participate in a joint venture project in China’s Liaoning Province, Mr. Swan said in a statement.

The agreement also stipulates that Angang Steel and Gindalbie will construct a port in Oakajee, West Australia to transport iron ore to China.

In 2007, Angang Steel signed an agreement with Gindalbie to acquire a 12.94% stake. Angang Steel thus became the largest shareholder of Gindalbie.

Earlier, Angang Steel and Gindalbie also invested A$1.8 billion to develop the Karara Iron Ore Project, of which each company owns a 50% stake.

Gindalbie also said it will begin hematite exploitation in 2009 and magnetite production in 2010.

Find More Other News : Company, Mine Trade & Market, mining companies