WISCO signed an agreement with Australia WPG on developing iron ore

May 6 MetalBiz--On April 29, WISCO signed the framework cooperation agreement with WPG on iron ore resource development and planed to invest 45mln Australian dollars for 50% rights and interests of HawkNest in the middle of south Australia,  which is the second significant breakthrough after the agreement with Australia CXM in 2008.

According to the agreement, the Australian listed company WPG plans to regularly additional share sale 1.5% stocks (12mln shares) with 0.25 Australian dollars per share to WISCO, about 3mln Australia dollar. Then, WISCO will become the second largest shareholder of WPG.

The two parties will set up joint venture company with the proportion of 50% respectively and develop HawkNest in the middle of south Australia. HawkNest reaches Australia JORC normal resource of 570mln tons and the resource potential can get to 1bln tons. After simple magnetic separation, the ore can be turned into high-quality iron ore fines. Under the consultation, WISCO will lead the exploration, feasibility study, design and construction, which not only gives full play to WISCO advantage of management, technology and talents, but also furthest controls the risk of WISCO overseas investment.

Insufficient Iron ore production is WISCO drawback all the time. WISCO will improve its annual steel production in the following years, while its iron ore outputs can not far meet the demand. It is very important to successfully sign this project for WISCO establishing overseas bases of iron ore.