Mid-West magnetite hopeful Asia Iron Holdings is targeting a 2012 production start at its flagship $2 billion Extension Hill project near Geraldton, after securing a major state-owned Chinese partner for the venture.

Chongqing Chonggang Minerals Development Investment Limited, a joint venture between Chongqing Iron & Steel Group and the Chongqing Foreign Trade and Economic Cooperation Group, today pledged $280 million to acquire a 60 per cent holding in Asia Iron from its Hong Kong parent, iron ore trader Sinom Holdings.