The Russian mining and steel producing company Evraz Holding (Evraz) and China Metallurgical Group Corporation (MCC) have concluded a cooperation agreement to develop West Australia-based Cape Lambert iron ore project.
For the development of the project in question, Evraz and MCC will create a joint venture company in which Evraz will hold 75 percent of shares and MCC the rest.
It is assumed that the most of the iron ore produced in the framework of the development of the Cape Lambert iron ore project will be shipped to China to satisfy the iron ore needs of local companies. In addition, MCC will have an exclusive right for the purchase of 60 percent of iron ore to be produced by the new JV company.
The Cape Lambert project consists of a 1.56 million mt iron ore deposit with iron content of 31.2 percent and will have a projected annual production capacity of 15 million mt.
As SteelOrbis has recently reported, shareholders of the Australian iron ore company Cape Lambert Iron Ore Limited (Cape Lambert) lately approved a AU$400 million ($382.4 million) sale of its Western Australia-based namesake iron ore project to China Metallurgical Group Corporation (MCC).