Sinosteel Corp., China's top iron ore trader,  announced  early this week that the company's profit soared by approximately  180  percent year-on-year in 2007, although it did not provide a figure.

The company  generated revenue of RMB 111.24 billion ($15.38 billion) in the year,  up  83.03 percent from 2006, and aims to boost revenue to $20 billion in 2008, the company said in the statement.

Sinosteel  is  also gearing up for an initial public offering (IPO) this year, but  has not yet released a target location or date. The company's IPO proposal was approved by the State Council at the end of 2007.

As China's  largest iron ore and coke trader, the company benefited from soaring  iron ore and coke prices last year. Indian iron ore spot prices more than   doubled   in   2007,  while  China's  coke  CIF  price  rose dramatically from $150 per ton in January to $245 per ton in November.

Potential Sinosteel acquisition

Sinosteel is currently expediting the consolidation of overseas iron ore resources, with the company submitting a bid last month to fully acquire Midwest  Corp.  Ltd,  an Australian-listed iron ore mining company, at a per-share price of AUD 5.60 ($4.86).

However, a recent South China Morning Post report said that David Law, a non-executive  director  in the Midwest who holds a 14 percent stake and controls  up  to  45  percent  of  Midwest,  blocked Sinosteel's AUD 1.2 billion  ($1.04  billion)  bid  for  the company, pending a higher price offer.

"South China  Morning  Post,  quoting  an  anonymous source, started the rumor yesterday, and the Australian papers picked it up. For the moment, a clarification  on  the  Australian Stock Exchange is not necessary," a Midwest  public  relations  department  official,  who  asked  to remain anonymous, told Interfax yesterday.

The report alleged that Sinosteel has already built up a 4 percent stake in Midwest  through on-market buying at a per share price well below its AUD 5.60 ($4.86) offer.

Both Sinosteel  and  Midwest officials were unavailable for comment when contacted by Interfax today.

Sinosteel   has   worked  with  Midwest  to  fund  the  exploration  and development  of  Midwest's  Weld  Range hematite iron ore and Koolanooka magnetite  iron  ore  projects  since  2005.  Both  sites  are  in close proximity to Geraldton Port, in Western Australia's mid-west region.

In August   2007,  Sinosteel  joined  forces  with  four  other  Chinese companies  on  the  Oakajee  Port  and  Rail  Port  project  in  Western Australia's  mid-west  region,  in  order  to give logistical support to Sinosteel's joint project with Midwest.

Sinosteel  also  has  access  to the nonferrous resources in the Western Australia's  mid-west  region  through  Fox  Resources  Ltd. A Sinosteel official  in  Australia,  who  asked  to  remain  anonymous,  said  "Fox Resources'  West Whundo copper and zinc project will commence production in the second  quarter  of  this year, delivering a total 12,000 tons of zinc concentrate  to  China.  It  has  repaid  the  AUD 4 million ($3.47 million) project loan to Sinosteel."