PERTH (miningweekly.com) - China’s Baosteel and its partner Aurizon have signed a memorandum of understanding (MoU) with Australian financial institution ANZ and the China Development Bank for the potential development of the West Pilbara iron-ore project.
Baosteel and freight transporter Aurizon acquired the West Pilbara project as part of its June takeover of then-listed Aquila Resources, in a deal that valued the takeover target at about A$1.4-billion.
At the time of the takeover offer, Baosteel vowed that it would quickly progress Aquila’s major assets, including the West Pilbara iron-ore project, with the Aurizon partnership allowing for significant economic benefits in allowing the developments.
Stage 1 of the West Pilbara project would require a capital investment of A$5.7-billion to deliver about 30-million tonnes a year of iron-ore, over a 15-year mine life.
ANZ said in a statement that the MoU covered the potential development of the West Pilbara mine, processing, rail and port infrastructure, as well as a new deep-water port at Anketell and a 280 km railway.