Fortescue and Sinosteel partner to assess Australian magnetite project

Australian iron ore miner Fortescue Metals Group Ltd said on Friday it had signed an agreement with Chinese metal trader Sinosteel to complete a rapid assessment of the latter’s Midwest Magnetite project in Western Australia, including a rail and port development at Oakajee.

After completion of the year-long assessment and subject to the outcome, Fortescue has the option to acquire up to 50 percent of the project and up to 100 per cent of the proposed port and rail infrastructure project, the company said in a statement.

“For over three decades, Sinosteel has demonstrated their strong performance and ability to deliver mining projects in Australia, including their Channar Mine in the Pilbara,” Fortescue Chief Executive Elizabeth Gaines said in a statement.

“The signing of this MoU demonstrates Fortescue’s commitment to our strategic pillars of investing in the long-term sustainability of our iron ore business, expanding into new regions and continuing to deliver strong returns to our stakeholders,” she added.

Sinosteel Group President Andong Liu said the massive scope magnetite project is reflected not only in the scale of resources, ore processing characteristics and product quality, but also in the huge renewable energy potential.  

“Sinosteel, like other pioneers in developing the Midwest region, has long cherished the vision of developing this world-class magnetite project in this area… Today, we are pleased to welcome our new partner in this visionary path, Fortescue,” Liu said.