It is reported that Chinese state owned Wuhan Iron & Steel Group Corp is happy with its iron ore joint venture with Australia Centrex Metals Ltd. It also says the value of its investment is increasing.

WISCO China third largest iron and steel group and a Fortune 500 company this week said its 60% owned iron ore joint venture on the Eyre Peninsula in South Australia was progressing well.

Mr Shaohua Wang director of the Department of Party Business at WISCO said "The cooperation with Centrex and WISCO is on the way and the market investment is increasing now. He said that we've done most of the cooperation between WISCO and Australia."

Mr Wang was unable to say whether WISCO which is Centrex second largest shareholder would consider further investments in Australia.

WISCO in November 2009 received Foreign Investment Review Board approval for a USD 271 million investment in Centrex. The deal included iron ore rights over five of Centrex exploration licenses under the joint venture which reached financial close in July this year.

Through its investment, WISCO acquired shares in Centrex under a placement at 25 cents a share or about USD 10 million entitling it to a seat on the board and giving it a 13.03% interest in the Australian stock exchange listed company. It also committed funding to Centrex, the iron ore and port joint ventures and assumed responsibility for arranging project finance.

WISCO's investment in Centrex was made during the global economic downturn alongside similar tilts at ore resources companies in Canada, Madagascar and Liberia.

Chinese companies were active in Australia during the global crisis taking advantage of falling stock prices to make investments in a number of resources companies in a bid for better access to valuable raw materials particularly ore and gas.

(Sourced from money.ninemsn.com.au)