Japan's Sojitz Corp is in talks to sell part of its 30 percent stake in the $2.57 billion Southdown magnetite project located in Western Australia, according to media reports. The remaining majority interest in the project belongs to Australia's largest integrated iron ore mining and pellet production company Grange Resources.
The Southdown project is scheduled to start up in 2014 and produce 10 million mt of low grade magnetite iron ore per year for at least 19 years.
With the sale of part of its stake, Sojitz Corp aims to share the development costs regarding the project.