(Yicai) Aug. 16 -- Chinese steelmakers used to just buy iron ore from Australia, but an increasing number are now investing in mining projects in the country.

One prominent example is the Western Range iron ore project in the Pilbara region of Western Australia, a joint venture between London-based international mining giant Rio Tinto and China Baowu Steel Group. 

Rio Tinto holds 54 percent of the venture, while Baowu owns the rest. The pair invested USD2 billion to set up the firm in September 2022. The project is expected to become operational next year and produce 25 million tons of iron ore a year.

Shanghai-based Baowu and Rio Tinto have already worked on developing the Eastern Range mine, also in Pilbara. In addition, Baowu has jointly developed the Ashburton project in Western Australia with Mineral Resources, South Korea’s Posco, and US firm Metals & Coal International.

Chinese companies are also supplying parts for mining operations in Australia. For example, Baowu is one of the key suppliers of railway components in the Pilbara region, and Wuxi Boton Technology is a major supplier of conveyor belts.

Simon Trott, head of Rio Tinto’s iron ore business, told Yicai that the company is working with other Chinese partners too, including Aluminum Corporation of China, to develop the Simandou iron ore mine in Guinea, while also building infrastructure such as railroads and ports for iron ore transportation.

Editor: Tom Litting