Fortescue pulls out of Iron Valley development

Australian mining giant Fortescue Metals Group Ltd has announced that it has agreed with Australia-based company Iron Ore Holdings Limited (IOH) to the early termination of Fortescue's exclusive option to develop IOH's Iron Valley deposit.
 
Accordingly, IOH will pay Fortescue A$4 million in consideration for the early termination of the option period, which was due to expire on March 31, 2013. Fortescue decided to pull out of the development project as it tries to improve production and cut debts.
 
As SteelOrbis previously reported, in February last year the parties signed a memorandum of understanding to include IOH's Iron Valley in an expanded Nyidinghu development and mining program located in the Chichester Hub in the Pilbara region of Western Australia.