JV Down Under to augment iron ore imports

The joint venture between mining and metals giant Rio Tinto Group and State-owned China Baowu Steel Group to develop a new iron ore mine in Western Australia's Pilbara region will further meet the demand for iron ore in China, analysts said on Wednesday.

China's steel mills have been investing in overseas iron ore mines to ensure adequate supply of raw materials. China relies on imported iron ore for more than 70 percent of its needs, said Zhu Yi, a senior analyst with metals and mining at Bloomberg Intelligence, a market monitor.

"Domestic mines have comparatively lower grades and higher production costs compared to their global peers, causing steel mills to go overseas for the raw material," she said.