Sinosteel lifts Murchison interest

Chinese company Sinosteel has formally become a substantial holder in Mid West iron ore miner Murchison Metals.

In a notice to the Australia stock exchange after market close, Sinosteel revealed it had acquired a 5.85 per cent stake in Murchison through on market purchases dating back to the start of 2008.

In the midst of the Midwest Corporation takeover battle last year, it was revealed that Sinosteel had acquired a 2.4 per cent stake in fellow Midwest suitor Murchison.

There was speculation at the time that Sinosteel may also launch a bid for Murchison.

Sinosteel wrapped up its takeover of Midwest in September, the same month when it gained approval from Treasurer Wayne Swan to take up to a 49.9 per cent stake in Murchison.