Bushveld Minerals signs MoU for joint testwork on P-Q iron-ore deposit
JOHANNESBURG (miningweekly.com) – Aim-listed mineral development company Bushveld Minerals has entered into a memorandum of understanding (MoU) with China Railway Group subsidiary China Railway No.10 Co (CREC 10) regarding the development of Bushveld’s P-Q iron-ore deposit, in Limpopo.
The MoU provided for CREC 10 and Bushveld to cooperate on a joint pyrometallurgy testwork programme with a view, subject to positive outcomes from the testwork, to signing a potential investment agreement, partnership for offtake contracts and/or joint infrastructure development.
The joint testwork programme, which would be funded equally by Bushveld and CREC 10, would be conducted in China by CREC 10's preferred pyrometallurgy consultant.
The programme would start in January and run for several months, Bushveld said, adding that, conditional on a positive outcome of the pyrometallurgy testwork, Bushveld would give CREC 10 preference in any investment deal into the P-Q iron-ore deposit.
Bushveld CEO Fortune Mojapelo said that, based on pyrometallurgy testwork already done by Bushveld, he was optimistic of a positive outcome to this process and looked forward to the joint work programme and taking the relationship with CREC 10 to the next stages.
“Positive results from this process, combined with the large-scale and low-cost mining nature of Bushveld’s P-Q deposit, would position this project favourably in the global iron-ore and steel industry and enhance the scope for the strategic partnerships we seek to support the accelerated development of this important project," he said.
CREC 10 deputy GM Nicolas Song said the MoU with Bushveld Minerals was an important first step in what the company hoped would be a long-term relationship.
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