On March 17, Isle of Man, UK-registered emerging iron ore producer Ferrous Resources Limited Group of companies, which includes Ferrous Resources do Brasil S/A, announced that it has signed a non-binding memorandum of understanding (MoU) with three large Chinese steel producers, including Jiangsu Shagang Group Co., Ltd., the largest privately owned Chinese steel producer, Beijing Shougang Steel Group and with one other large state-owned Chinese steelmaker, covering off-take of iron ore concentrate.
According to the Ferrous Resources statement, the company is advancing its plan to become a major iron ore producer and exporter of iron ore products to international markets at an annual rate of 25 million mt by the end of 2013, increasing to 65 million mt per year by the end of 2016.
Ferrous Resources holds significant iron ore assets in Minas Gerais, Brazil, which it plans to develop in two stages. In the first stage the company targets a production rate of 25 million mt per year from the Viga Property by the end of 2013, and in the second stage it plans to expand the production to 50 million mt, by the end of 2016.