Sinosteel making losses from overseas businesses (2)

Sinosteel's mining project in Cameroon has reportedly suffered from a lack of infrastructure for mining and transportation of iron ore.

In 2010, Sinosteel signed another deal, promising to buy 10 million tons of iron ore annually from Brockman Resource's Marillana project in Western Australia, for the next five year period.

Zhang noted that overproduction of steel, the slowdown in the economy, and uncertainty over the real estate industry are the three key factors behind sluggish sales in the steel sector.

According to figures released by the National Development and Reform Commission in October, in the first three quarters this year, crude steel production rose by just 1.7 percent year-on-year, 9 percentage points less than in the same period last year.

Sun Fei, director of the Chinese Enterprises Overseas Development Center, told the Global Times Thursday that some Chinese companies have not paid enough attention to risk control when seeking overseas opportunities.

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