24/02/2010 - 09:24

Gindalbie, Ansteel sign another JV deal

24/02/2010 - 09:24

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Gindalbie Metals and Ansteel have signed another joint venture agreement to target new resource development opportunities in Australia outside of the $1.8 billion Karara iron ore project in the Mid West.

Gindalbie, Ansteel sign another JV deal

Gindalbie Metals and Ansteel have signed another joint venture agreement to target new resource development opportunities in Australia outside of the $1.8 billion Karara iron ore project in the Mid West.

Both parties have signed a memorandum of understanding, which provides the framework to identify opportunities primarily in metallurgical coal, manganese, chromite and nickel.

The pair will also look at downstream opportunities such as pellet plants and steel mills.

Ansteel is already carrying out feasibility studies into the development of an integrated iron and steel plant and rolling mill at the Oakajee industrial estate, near Geraldton.

The study follows an agreement Ansteel signed with the state government last year to investigate the possibility of developing a processing plant.

Ore from the Karara iron ore joint venture is expected to underpin the development of the $4 billion Oakajee deepwater port and associated rail.

Ansteel has already invested a total of $573 million into the Karara iron project, where development has started with $260 million worth of contracts handed out in the past week.

"We have already identified a number of attractive opportunities in the carbon steel materials space and we intend to step up our search for new projects over the coming months," Gindalbie managing director Garret Dixon said.

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