It is reported that the Federal Government has vowed to pursue companies that exclude Australian steel manufacturers from bidding for work on massive resources projects by using foreign standards.

Confidential tender documents obtained by The Australian newspaper reveal Perth based iron Ore Company Gindalbie Metals offered Chinese companies the chance to work on its USD 2.6 billion Karara iron ore project in WA by using Chinese standards for steel.

Chinese steelmaker Ansteel, one of Gindalbie biggest shareholders won the 4000-tonne steel contract.

The company has denied it was given preferential treatment or that local companies were excluded from bidding for the work.

A tender document for Rio Tinto Pilbara expansion also reveals steel plates, floor plates and welded sections comply with Chinese standards.

Mr Kim Carr Manufacturing Minister said there were industry participation plans that made it a requirement that companies build partnerships with local firms.

He said that where people were doing the wrong thing the government would act. He added that "We will pursue those issues with the companies."

He also said "We want to get to the facts of this matter."

(Sourced from thewest.com.au)