As Chinese steel firms step up their efforts to explore resources abroad, there have been ups and downs in their gains because of inexperienced risk management, reports Du Juan in Perth, Australia

Facing increasing domestic demand for iron ore with high import prices in recent years, Chinese steel companies have been trying to find an effective investment model to make acquisitions cheaper and more predictable.

They have made moves into Australia, Brazil and Africa, where the resource is found in abundance but some projects have had to be suspended because of various political, financial or environmental reasons while others have been relatively successful.