Sinosteel, one of China’s largest steelmakers, has stepped up its efforts to secure supplies of Australian iron ore, sweetening its cash offer for Perth-based Midwest Corporation to A$1.36bn (US$1.27bn) and winning support from Midwest’s previously reluctant board.

The deal would be one of the largest mining takeovers by a Chinese company and comes amid a string of investments by Chinese state-owned companies in the Australian resources sector.