PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has inked a binding memorandum of understanding (MoU) with major Sinosteel to complete a rapid assessment of that company’s Midwest magnetite project.
The assessment will include a rail and port development at Oakajee, Fortescue said on Friday.
At the end of the 12-month assessment, and subject to the outcome of the process, Fortescue will have the option to acquire up to a 50% interest in the Midwest magnetite project, and up to 100% of the proposed port and rail infrastructure project.
“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,” said CEO Elizabeth Gaines.
“We look forward to working with Sinonsteel on the next steps for this important project for Western Australia, which in addition to the magnetite and infrastructure development, offers the opportunity for a coordinated project combining Fortescue’s iron-ore and infrastructure pedigree with Fortescue Future Industries’ green energy objectives.”
Gaines said that future development, including a renewable, green hydrogen hub in the Midwest region at Oakajee, would deliver a large-scale resource and renewables project for Western Australia, further underpinning the state’s relationship with China.