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TOP-SIX Chinese steel maker Hunan Valin Steel Tube and Wire says its investment in Golden West Resources is an 'ice breaker', suggesting it may up its stake in the West Australian junior iron ore explorer.
At a ceremony in Perth to cement a strategic co-operative agreement between the steel maker and Golden West, Hunan Valin chief executive Cao Huiquan said it would continue to invest in developing resources as part of its long-term approach to secure ore for steel-making.
This is an ice-breaking action for Valin to invest in overseas resource companies and is a very important thing in the Chinese steel industry, Mr Cao said.
Under the alliance between Golden West and Hunan Valin announced last month, the steel maker will take an 11.4 per cent stake in Golden West, injecting $26.64 million into its coffers
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