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.