Australian iron miner Fortescue has announced the finalization of its joint venture agreement with Baosteel Trading Co Ltd, a subsidiary of the largest Chinese steelmaker Baosteel Group, for the exploration of a mine in the Pilbara region of Western Australia. The mine in question is estimated to contain one billion tons of magnetite deposits.
According to the official release issued by Fortescue on August 28, Baosteel will fund the exploration of the area and the project's feasibility studies. Both Fortescue and Baosteel will each have a 50 percent stake in the joint venture.
In March 2007, Fortescue signed an agreement with Baosteel for the export of up to 20 million mt of iron ore per annum.