Fortescue Metals Group Ltd and Sinosteel have signed a binding Memorandum of Understanding (MoU) to complete a rapid project assessment of Sinosteel's Midwest Magnetite Project, with the assessment to include a rail and port development at Oakajee.
At the conclusion of the 12 month rapid project assessment and subject to the outcome of that process, Fortescue has the option to acquire up to 50 per cent of the Midwest Magnetite Project and up to 100 per cent of the proposed port and rail infrastructure project.
Fortescue Chief Executive Officer, Elizabeth Gaines said, "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.
"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.
"We look forward to working with Sinosteel 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 co-ordinated project combining Fortescue's iron ore and infrastructure pedigree with Fortescue Future Industries' green energy objectives.
"Future development including a renewable, green hydrogen hub in the Midwest region at Oakajee would deliver a large-scale resources and renewables project for Western Australia, further underpinning our enduring relationship with China," Ms Gaines said.
President of Sinosteel Group Corporation Ltd. Andong Liu, said "Sinosteel, like other pioneers in developing the Midwest region, has long cherished the vision of developing this world-class magnetite project in this area. This world-class project is reflected not only in the scale of resources, ore processing characteristics and product quality, but also in the huge renewable energy potential. Today, we are pleased to welcome our new partner in this visionary path, Fortescue.
"Fortescue is not only a leading iron ore producer, but also a pioneer in green energy initiatives.
