Hebei Iron & Steel Group, China's largest steel producer, has been given the go ahead to invest in Canadian iron ore developer Alderon Iron Ore Corp.

The investment has gained approval from the country's top economic planning body, the National Development and Reform Commission.

Hebei Steel said in April that it would invest about CAD 194 million for a near 20% stake in Alderon and a 25% interest in Alderon's principal asset known as the Kami project, located in Canada's Labrador Trough. The deal would also give Hebei the right to buy 60% of annual iron ore produced from the Kami project.

The Kami project has a proven reserve of about 1 billion tonnes, with an expected annual output of 8 million tonnes after it goes into production in 2015.

Source: Xinhua via Reuters

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