Can Sino Iron Dig Out of Its Investment Hole?

(Beijing) -- It looked like a profitable, no-brainer investment when China's CITIC Pacific bought an Australian iron ore mine for US$ 450 million.

The year was 2006, and soaring Chinese demand for the raw material needed to make steel and other iron products was pushing Australian ore prices to new heights. Imported ore prices shipped to China had hit US$ 60 a ton.