China Knowledge reported that Jiuquan Iron and Steel Group has secured approval from Gansu Provincial People's Government to set up a joint venture with Kazakhstan mining company International Mineral Resources in order to gain access to Kazakhstan's rich iron ore reserves, according to industry reports.

According to the report, Jiu Steel will pay CNY 30 billion in the form of assets for a 51% stake in the joint venture while IMR has agreed to pay CNY 10.373 billion for the remaining 49% stake. IMR would supply iron ore at prevailing market prices to Jiu Steel in the future. The cooperation agreement will have a long tenure of 50 years.

Jiu Steel China 16th ranked steel maker will contribute its entire steel production assets and mines, as well as its holdings in its Shanghai-listed unit, Gansu Jiu Steel Group Hongxing Iron and Steel Co and in another firm, Yuzhong Iron and Steel Co to the joint venture.