China Minmetals Corp has said it would invest in a US$72-million steel making project in India, the first investment in that country's steel industry by a Chinese company.

The nation's largest base-metals trader and China's Xinxing Pipes Group have formed a venture with Indian partners last week to construct a steel complex that needs investment of US$72 million in the first phase, China Minmetals said in a statement on its Website late Monday.

China Minmetals and Xinxing own a combined 55 percent in the venture, with the balance held by three unidentified Indian companies, the Beijing-based company said.

The plant will be capable of producing six million tons of iron ore pellets and 2.5 million tons of steel per year and construction has started, China Minmetals said.

This marks the first investment by a Chinese company in India's steel industry.

Shanghai-based Baosteel Group Corp has agreed to build a plant in Brazil.

"It's also in line with China Minmetals' development strategy,'' Xu Siwei, a vice president of the base-metals trader, said in the statement. "Our vision is to expand out of China, use overseas resources and Chinese technology, and to produce steel products that are most in demand in local markets.''