Canadian iron ore company Champion Iron Limited has announced that it has entered into a definitive purchase agreement for the acquisition of the Pointe Noire Pellet Plant from Canada-based Société Ferroviaire et Portuaire de Pointe-Noire S.E.C. (SFPPN) for a cash consideration of CAD$2.5 million.
The company has also signed a memorandum of understanding with an international steelmaker, FS Partner, to complete a feasibility study to evaluate the re-commissioning of the facility and produce direct reduction grade pellets. The feasibility study is expected to be completed in 2023.
The plant, which is located near the port facilities that Champion currently uses, has an annual production capacity of six million mt.