Baosteel sets up favorable cooperative relationships with the renowned suppliers at home and abroad for non-ferrous metal such as nickel, chrome, manganese, copper and zinc, etc., and makes investments in many alloy production bases and non-ferrous minerals enterprises at home and abroad

Another company they invested in

May 4, Baosteel Resources Co. Ltd. has signed a strategic cooperation agreement with Yunnan Metallurgical Group Co. Ltd. (CYMCO) to acquire a 12% stake in the latter’s Dounan Manganese Co. Ltd. subsidiary and work together to develop manganese production, China Securities Journal reported Tuesday.

The deal, which was signed in Kunming city, will make Baosteel Resources the second largest shareholder in Dounan Manganese, which is principally engaged in the exploitation and smelting of manganese minerals, ahead of its planned initial public offering.

Baosteel Resources, a fully owned subsidiary of domestic steel giant Baosteel Group Corporation, plans to integrate CYMCO’s expertise in exploration and mine operation in its pursuit of overseas mining resources.

The two companies have also agreed to cooperate in international logistics, research and development and manganese product trading.

Baosteel Resources said the purchase was consistent with its corporate strategy of building a manganese industrial chain. The company purchased a 10% stake in Jiang Xi Yong Sheng Mining and Metallurgical Co. Ltd. at the end of 2009.

The deal will take Baosteel Resources a step closer to building a domestic metallurgical base