China Railway acquiring stakes in 2 Australian ore firms

China Railway Materials Commercial Corp has agreed to pay A$39.8 million ($34 million) to buy stakes in two Australian iron ore explorers to secure supplies.

State-owned China Railway agreed to buy an 11.4 percent stake in United Minerals Corp and a 12 percent stake in FerrAus Ltd, the two Australian companies said yesterday in separate statements. Both agreements include talks for sales accords with Beijing-based China Railway for future ore output.

China, the world's biggest iron ore buyer, has been investing in Australia to secure supplies as steel demand surges.