Chinese companies to participate in iron ore project in Australia

Chinese companies to participate in iron ore project in Australia

According to recent news in the market, a group of Chinese companies will participate in a $1.85 billion iron ore project in Pilbara, West Australia. The deal has been signed between three Chinese state-owned companies and Australian firm Fortescue Metals. According to the deal, Chinese companies will finance the project, design and construct the mine and port facilities. Fortescue owns the lease of the iron ore. Fortescue officials stated that Pilbara region of West Australia has the largest iron ore reserves in the world; however supply to China has been limited so far due to the insufficient infrastructure. Through the planned infrastructure, many companies in the Pilbara region of West Australia will benefit from the iron ore transportation system. Therefore these companies will be able to supply more iron ore to China, which will strengthen the relations between China and Australia.