Interpac Business and Migration Solutions Melbourne Australia

(July.7)

The infrastructure costs of Karara, a project jointly developed by Anshan Iron and Steel Group andGindalbie Metals Ltd,

went up significantly more than first estimated, the 21st Century BusinessHerald reported Wednesday.

Gindalbie Metals Ltd, an Australian company that AnshanIron and Steel Group has a stake in, published the costbudget

of the iron ore mining project, which is now at 2.57billion Australia dollars ($2.76 billion), an increase of 55percent from

its first budget made in 2007.

Gindalbie Metals Ltd said the increase is due to the soaringprice of cement, steel and labor costs. The report said other

Chinese companies which have overseas projects areworried about their costs as well. Some of them have already

stopped their investments in Australiaresource projects or have suspended investments.

Gindalbie's public document said the company is thinking of enlarging Karara's annual output from10 million tons of iron

ore products to 16 million tons. Some industry insiders have said this actionwill lower the project's costs.

Source from Chinadaily