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The agreement will establish a multi-level commodity trading market system and win China more of a say in the pricing of metals.

The lease extension will be granted after an application has been made by the state-run company.

China accounts for more than 20 percent of the company's total sales volume, Machkevitch stated.

To combat this, a number of mine operators are opting for radar transmitters.

He also points out that the deal comes at a weak point in the steel sheet market cycle.

COKING COAL on Tuesday: Chinese buyers mildly bullish but market still muted.

Steelmakers were announcing price increases to try to reverse the trend.

Buyers were reluctant to book large tonnages before prices hit a market bottom and end-user demand begins to improve.