Resource News
Fortescue, BC Iron finalise iron ore joint venture
By resourceINTEL · August 24, 2009 · 6:49 am · Leave a Comment
FORTESCUE Metals Group and BC Iron have formalised their joint venture for the Nullagine project today, in a move to fast track construction of the mine.
The formal deal was signed ahead of schedule in a move seen as a vote of confidence for the project by the Pilbara’s third force in iron ore.
BC Iron in July announced Fortescue had given its in-principle endorsement to the Nullagine project, which is located near Fortescue’s Chichester operations, following an agreement reached in June.
Under the deal, Fortescue can earn a 50 per cent interest in the project by providing BC Iron with rail haulage, port handling and ship loading facilities.
The landmark deal will boost BC Iron’s prospects as it becomes the first junior to gain third party access to both rail and port infrastructure.
A formal decision on the joint venture was not expected until after the outcome of the test pit at the site but finalising it ahead of the outcome of that process means construction of the mine could be fast-tracked.
The junior plans to start mining at a rate of 1.5 million tonnes a year, with Fortescue having to provide half the $43 million needed to hit that target…read more at The Australian
