BC Iron-Cleveland Mining JV to acquire new iron ore projects in Brazil

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.