Wuhan Iron and Steel Co. (WISCO), China's third-largest steelmaker, plans to start exploratory drilling for iron ore in Madagascar's Soalala region at the end of May this year, company officials have stated, as reported by international media.
WISCO Madagascar paid $100 million for exploration permits in 2010.
"Our investments will be made in stages, depending on the results of the survey. The investment decision is expected within six to eight months, followed by the construction phase which will last four years," said WISCO Madagascar's chief executive Jun Yuan Lou.
"The actual operation should start in five years," he stated at the signing of an environmental impact study and exploratory drilling agreement with Madagascar's National Environment Office.