Shanxi Taigang Stainless Steel Co., China's biggest maker of the rust-resistant alloy, and parent Taiyuan Iron & Steel Group Co. will develop an 8.8 billion yuan ($1.3 billion) iron-ore project in the northern Shanxi province.

The mine, located in Lu Liang city, holds proven resources of 1.2 billion metric tons, the Taiyuan, Shanxi province-based company said today in a statement to the Shenzhen Stock Exchange.