Australian
iron ore development company
BC Iron and Perth,
Australia-based Cleveland
Mining Company announced on August 20 that they have entered into an
iron ore strategic alliance.
Under the terms of the strategic alliance,
BC Iron will form a JV partnership with Cleveland aimed at acquiring and developing new
iron ore projects in
Brazil and, furthermore, will take a cornerstone ownership position in Cleveland.
BC Iron will take a five percent equity stake in Cleveland for approximately $6 million.
BC Iron stated that its prime focus to date has been on the development and ramp-up of the Nullagine joint venture in the Pilbara Region of Western
Australia with a production rate of 5 million mt per year in May 2012. Similarly, Cleveland has been focused on its current project hubs and therefore has not been in a position to date to assess other
iron ore project opportunities. With this alliance, both companies are now able to more quickly advance their growth plans, said
BC Iron.