Chinese steel producer Shandong Steel has signed memorandums of understanding (MoUs) with Shandong-based Xinwen Mining Group and Hongkong-based Honbridge Holdings to jointly develop the SAM iron ore project in Brazil.
According to the agreement reached by the three parties, Xinwen Mining Group will be responsible for the prospecting and preparation work before the start of the project and for negotiations on coordination of iron ore exploitation after the start of formal operation of the project. After the completion of prospecting activities, Shandong Steel will invest in the exploitation of the project. The details regarding the amounts of the investments by the two Shandong-based companies have not been made available.
The Brazil-based SAM iron ore project, previously owned by the South American VNN Company, has a reserve of 6.2 billion mt of specular hematite iron ore, located in the state of Minas Gerais,. In March this year, Honbridge Holdings obtained the exploration rights for the project, which is expected to have an annual capacity of 25 million mt of iron ore concentrate.