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WISCO signs agreement with Australian WPG on iron ore exploitation |
[11/5/2009] |
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On April 29, WISCO entered into a framework agreement with Australian WPG on iron ore exploitation，planning to invest AUD45 million to obtain 50% equity of the cooperative mining area located at middle of south Australian，which stands for another remarkable breakthrough following the contract between WISCO and Australian CXM inked in 2008.
By the agreement, WPG, a listed company in Australian, will issue directional additional stake of 15％ to WISCO (12 million shares) at rate of AUD0.25/per share with total amount of about AUD3 million. This makes WISCO the second stakeholder of WPG.
Aiming to exploit ore resource at Hawk Nest mining area, both parties will set up a joint-venture company in line with 50％ stake owed by each. The mining area occupies 0.57 billion tons of ore qualified for Australian JORC resource standard with potential of 1 billion tons. Superior fine iron ore can be acquired after simple magnetic separation. As per the deal, WISCO is to play leading role in exploration, study , design and construction for the whole project, not only exerting the most of the advantage that WISCO is rich in experience on mine management，technology as well as talents , but also avoiding overseas investment risk farthestly.
WISCO has long been curbed by the shortage of self-produced iron ore from boosting ahead. In the next few years, WISCO will further lift its annual crude steel capacity however confronted with the bottleneck of insufficient supply of self-produced iron ore. The signing of this agreement means significantly for WISCO to establish its iron ore resource base overseas.
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