China's third largest steelmaker Wuhan Iron and Steel (Group) Corp and Kam Hing International Holdings Limited (HK: 2307) signed recently two cooperation agreements on exploration and exploitation of iron and other mineral resources in Madagascar.

   Under the first cooperation agreement, the two companies will form a joint venture company, in which Wuhan Iron Steel holds 60 percent interest, while Kam Hing International holds 40 percent.

   The joint venture will be responsible for the exploration and exploitation of iron and other mineral resources in Bekisopa region of Madagascar, with an area of about 287 square kilometers.

   Kam Hing International has acquired the mineral exploration and exploitation rights of the Bekisopa region in late 2007 and the company will contribute the exploration and exploitation rights as capital in the JV company.

   Under the second cooperation agreement, Wuhan Iron and Steel and Kam Hing International agreed to use the JV company for acquiring another mineral exploration and exploitation rights in other region of Madagascar.