Hubei Province-based Chinese steel giant Wuhan Iron and Steel Co., Ltd (WISCO) has announced that Wugang Australian Resources, Australia-based subsidiary of WISCO, has concluded an agreement with Australian miner Centrex Metals Ltd (CXM) to obtain a 60 percent stake in the latter's new iron ore project located in South Australia.
Under the agreement signed on July 7, 2010, Wugang Australian Resources has delivered a down payment of AU$51.5 million and an exploration fee of AU$50 million to CXM, which in turn has handed over the mining license in question to Wugang Australian Resources.
Upon completion of the project, the mine will have an annual production capacity of 33 million mt of raw ore and 10 million mt of iron ore concentrate. The total investment of the project is expected to reach $1.5 billion.