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Chinese rail firm gets foothold in Mount Gibson mine

<p>A Chinese state-owned rail group has taken a 5.9% stake in Western Australia’s Mount Gibson Iron, generating funds that will expand output at the Tallering Peak mine.</p> <p>The Union Park Company, which is a subsidiary of China Railway Materials &#38 Supplies Corporation (CRMSC), now has a direct and indirect holding of 18.5m shares in the company, Mount Gibson Iron said.</p> <p>Mount Gibson Iron’s subsidiary, Mount Gibson Mining, is presently negotiating with CRMSC for the supply of rail wagons, rail, sleepers and construction of an 85 km rail link between Perenjori and the Extension Hill mine.</p> <p>The share purchase has strengthened the company’s balance sheets and will allow it to purchase 35 new rail wagons from China to help increase shipping volumes from the existing Tallering Peak hematite mine to 2.5m tonnes a year from the second half of 2005, Mount Gibson said. </p> <br />