UK-based London Mining, a global miner which supplies the steel industry, announced on July 30 that it has entered into a joint venture with a partner based in both China and Chile, with the aim of taking advantage of several iron ore opportunities in the Atacama region of Chile.
The joint venture company, Atacama Mining Resources Corporation (Atacama), through its Chilean subsidiary, holds options over concessions to iron ore deposits in the Atacama region of northern Chile. Under the agreement, London Mining has subscribed for 50 percent of the shares of Atacama.
London Mining has also agreed to make additional loans of an aggregate US$5million to Atacama to fund acquisitions of a number of concessions in the area and to get exclusive rights from its joint venture partners on future iron ore prospects in Chile. The loans will be repaid to London Mining from the first sales of ore made by the joint venture or by third party funding into the joint venture.
The Atacama projects are located within a short distance from a number of potential port opportunities and logistics arrangements for export to China are being investigated, London Mining said.