Baosteel Group will expand its alliance with Shanxi Coking Coal to guarantee access to the latter's output, the official Shanghai Securities News reported.

    Xu Lejiang, Baosteel's chairman, recently visited Shanxi Coking Coal to seek an expanded tieup, the report said.

    The two companies set up a joint venture in April 2007 to develop the Huobao Ganhe coal mine in northern China, which will have annual capacity of 2.1 mln tons.

    Prices of coking coal and coke have been rising this year, pushing up steelmakers' operating costs.

    Senior executives from Taiyuan Iron & Steel and Shougang Steel Group also have visited Shanxi Coking Coal recently, the paper added.