China's Wuhan Steel to explore Madagascar iron ore

SHANGHAI, Feb 4 (Reuters) - China's Wuhan Iron & Steel Group, China's fifth-largest steel producer, will set up a joint venture to explore iron ore and other resources in Africa's Madagascar, a company spokesman said on Monday.

Wuhan Iron & Steel Group, parent of Wuhan Iron and Steel Co (600005.SS: Quote, Profile, Research, Stock Buzz), would take a 60 percent stake in the joint venture, with the remaining 40 percent taken by Hong Kong-based Kam Hing International Holdings Ltd, said Bai Fang.

Bai said he was unaware of the total investment of the joint venture.

Chinese steel mills, in talks with miners on iron ore prices for the fiscal year starting April, have been actively seeking iron ore and other resources outside China to strengthen their raw material supplies.

Price of Wuhan Iron and Steel Co jumped 8 percent on Monday morning to trade at 20.99 yuan ($2.92) apiece. ($1=7.181 Yuan) (Reporting by Rujun Shen and Alfred Cang)