Western Australian iron ore company Gindalbie Metals Ltd has signed a joint venture (JV) development agreement with leading Chinese mill Anshan Iron and Steel Group (Ansteel) in the presence of the president of the People's Republic of China, Mr. Hu Jintao, and Australian prime minister Mr. John Howard.
The agreement is for the development of Gindalbie's Karara magnetite and Mungada hematite projects in Western Australia. The projects in question will include a total investment of AUD 1.8 billion (approximately USD 1.49 billion) in new mining and processing facilities, plus associated infrastructure in Western Australia and China.
The Karara magnetite project, scheduled to deliver its first ore by the first quarter of 2010, is expected to cost AUD 1.6 billion (USD 1.32 billion), while the proposed cost for the Mungada hematite project is AUD 94 million (approximately USD 77.75 million).
Also, a pellet plant to be established in northeastern China will be subject to an equity joint venture between the parties.
Early last week, Ansteel completed its previously announced acquirement of a 12.94 percent interest in Gindalbie.