Sinosteel Wallows Deep in an Australian Hole

China's first successful hostile takeover abroad is looking more like a money pit for Sinosteel Corp., China's largest iron ore trader, which was recently forced to suspend its huge mining and project in Western Australia.

The state-owned company paid A$ 1.36 billion for a 100 percent stake in mine operator Midwest Corp. in 2008 and renamed it Sinosteel Midwest Corp. The takeover was touted as a significant victory in China's race for vital Australian resources.