Xinxing inks for Cape Lambert stake

Australian iron ore exploration and development company Cape Lambert Iron Ore Ltd (Cape Lambert) has announced that Chinese Group Xinxing Iron Pipes Co. Ltd (Xinxing) signed a non-binding Memorandum of Understanding in early October confirming its intention to takeover 19.9% of Cape Lambert With the stake purchase, Xinxing aims to benefit from Cape Lambert's iron ore project in Norh Western Australia. When the binding contracts are completed, Xinxing will have the right to obtain 500,000 to 1 million metric tons of iron ore per annum, with the ability to take a maximum of 5 million metric tons of iron ore concentrate. The parties are planning to sign a binding agreement before the end of October. Xinxing is the largest steel pipe manufacturer in China and the world's second largest. Its main activities are smelting and processing steel and iron as well as manufacturing and selling cast iron pipes and steel grates. Cape Lambert is still in negotiations with other Chinese and Indian groups with a view to selecting a partner that is not only committed to taking ore, but also to the development of the Cape Lambert Project.