According to Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Corporation (WISCO), senior officials from the Australia-based mining company Centrex Metals Limited (CXM) paid a visit to WISCO on November 1, during which CXM chairman and CEO David Klingberg held talks with WISCO general manager Deng Qilin.
In July this year, WISCO's Australian subsidiary Wugang Australian Resources concluded an agreement with CXM to obtain a 60 percent stake in the latter's new iron ore project located on the Eyre Peninsula in South Australia. Under the agreement, Wugang Australian Resources delivered a down payment of AU$51.5 million and an exploration fee of AU$50 million to CXM, which in turn handed over the mining license in question to Wugang Australian Resources. Upon completion of the project, the mine will have an annual production capacity of 33 million mt of raw ore and 10 million mt of iron ore concentrate. The total investment of the project is expected to reach $1.5 billion.
As announced by WISCO in connection with the visit by the CXM officials, WISCO has already commenced exploration work in the mining area in question, with a total of 19 drillings to be completed by mid-November.