FMG, Baosteel Pilbara JV unveil resource

Fortescue Metals Group has released a maiden resource for its Glacier Valley tenement area in the Pilbara, which is subject to a joint venture with China's Baosteel Group Corporation.

The Pilbara iron ore miner today said an inferred mineral resource of 1.23 billion tonnes at an iron ore grade of 33.1 per cent had been estimated for the area, located 100 kilometres south of the Herb Elliot port.

Baosteel entered the JV deal in August 2007, and has since acquired a 35 per cent interest after spending the required exploration amount.

The Chinese entity can now earn up to a 50 per cent stake after spending a set amount to cover feasibility studies.

Fortescue said additional work is required before the boundaries of the JV can be finalised.

Shares in Fortescue were down four cents to $4.35 at 13:42 AEST.

More to come...