Bloomberg reported that China may double the proportion of domestic iron ore demand supplied by Chinese owned mining assets abroad to about 20% in five years as the country steelmaker step up acquisitions.
Mr Paul Gray a London based analyst with the Goldman unit said China currently buys about 10% of its iron ore from mines owned by Chinese steelmakers in other countries. The country steel producers which hold iron ore assets in Australia are seeking acquisitions in Africa, Mongolia, Kazakhstan and Afghanistan.
He said that Chinese imports account for about 70% of global seaborne iron ore shipments. Total seaborne supplies may grow 5% this year to about 860 million tonnes as Chinese crude-steel output rises 8%.
Mr Richard Court, the Australia-based chairman of mineral research company GRD Minproc Ltd, said Chinese investments to prospect for minerals in Africa grew to USD 1.6 billion in 2007 from USD 500 million in 2006.