Aquila said it had been notified that a party related to Baosteel purchased 19 million shares, equating to 4.6% of the company’s shares on issue.

Baosteel acquired a 15% stake in Aquila in 2009 and last month increased its stake to 15.2%.

“The company welcomes Baosteel’s increased shareholding and views it as a sign of continued support for the development of the West Pilbara iron ore project and broader appreciation of the value that Aquila’s current share price represents,” Aquila said.

“With over $500 million in cash and liquids, a high quality portfolio of assets and the Eagle Downs hard coking coal project under construction, the company remains well-positioned to capitalise on China’s ongoing demand for steelmaking raw materials.”