China Jiugang to put $4.4 bln assets into Kazakh JV

SHANGHAI, July 2 (Reuters) - Jiuquan Iron and Steel Group (Jiugang), China's No. 16 steelmaker, plans to inject assets worth 30 billion yuan ($4.38 billion) into a joint venture with a Kazakhstan iron miner, Jiugang's listed unit said on Wednesday.

Jiugang will inject all of its steel-making facilities and mining assets, including its stake in Gansu Jiugang Hongxing Iron and Steel Co (600307.SS), into the joint venture, the company said in a statement filed with the Shanghai stock exchange.

The Kazakhstan mining company will inject 10 billion yuan in cash into the joint venture, which is based in Jiugang's home province of Gansu, in western China.

Jiugang will hold a 51 percent stake in the venture, with its Kazakh partner owning the reminder, the statement said.

Shares of Jiugang Hongxing were up 6.25 percent at 9.52 yuan in morning trade, compared with a 0.5 percent rise in the Shanghai composite index .SSEC.

Beijing is encouraging China's steelmakers to cooperate with foreign firms in order to secure raw material supplies or advanced technology and management expertise, but bans foreign firms from taking a controlling stake in Chinese mills. ($1=6.856 Yuan) (Reporting by Alfred Cang; Editing by Edmund Klamann)