Chinese steel giant AnSteel's joint venture project in Australia has been put into operation, the company said Thursday.

Karara Mining, a JV project between Anshan Iron and Steel Group Corporation (AnSteel) and Australia's Gindalbie Metals Limited, started operations on Tuesday (local time), said Zhang Guangning, chairman of AnSteel.

Covering a total area of 156 square kilometers, the project is expected to have an annual production capacity of 21 million metric tons of magnetite ore and 8 million tons of iron concentrate, said Zhang.

AnSteel's product share will mainly be provided to the iron and steel base in Bayuquan, an economic development zone in Yingkou city, Northeast China's Liaoning province.

The Karara mine is located in Western Australia and is the country's second largest source of magnetite, with proven reserves of 2.4 billion tons. It has been jointly exploited by AnSteel and Gindalbie since the end of 2009, according to the agreement signed by the two companies in September 2007.

Based in Anshan city, Liaoning, AnSteel is one of China's principal iron and steel corporations. The company's proven reserves account for one-fourth of the country's total.