Wuhan Iron and Steel has reached agreement to pay US$122m for a 60 per cent stake in a joint venture with Adriana Resources of Canada that will develop iron ore resources in Quebec. Wisco will also receive a 19.9 per cent stake in Adriana under a private placement.

Adriana’s president and CEO Allen J. Palmiere said that one of the mines, known as Lac Otelnuk, has the potential to be one of the largest iron ore mines in the world.

In recent years, Chinese steel makers have been investing widely overseas to secure future iron ore supplies and enhance their negotiating power.