Australian
mining giant
Fortescue Metals Group Ltd has announced that it has agreed with
Australia-based company
Iron Ore Holdings Limited (IOH) to the early termination of
Fortescue's exclusive option to develop IOH's Iron Valley deposit.
Accordingly, IOH will pay
Fortescue A$4 million in consideration for the early termination of the option period, which was due to expire on March 31, 2013.
Fortescue decided to pull out of the development project as it tries to improve production and cut debts.
As SteelOrbis previously reported, in February last year the parties signed a memorandum of understanding to include IOH's Iron Valley in an expanded Nyidinghu development and
mining program located in the Chichester Hub in the Pilbara region of Western
Australia.