Baosteel Group Corp., China's biggest steelmaker, agreed to buy a 15 percent stake in Aquila Resources Ltd., an Australian iron ore and coal company, on Thursday, according to the statement on Baosteel's official website, baosteel.com.

The Shanghai-based Baosteel agreed to buy 43.95 million new Aquila shares at 6.50 AUD each. The 286 million AUD (240 million USD) investment will make Baosteel the second largest shareholder of the Perth-based company. After the acquisition, a director from Baosteel will be accredited to Aquila.

In addition, the two companies signed a memo about their cooperation. "Baosteel values the growth potential of Aquila assets," the company said in a statement on its website, adding that it also agreed to explore for minerals with Aquila.