Grange signs MoU with Metso Minerals

Grange Resources Ltd has announced today that the company and its joint venture partner have signed a Memorandum of Understanding with the global engineering and technology corporation Metso Minerals Ltd for the Southdown Magnetite Project.

Full announcmeent pasted below:

Grange Resources Limited (ASX: GRR) is pleased to announce that the company and its joint venture partner Sojitz Resources and Technology Pty Limited ("Sojitz") have signed a unique Memorandum of Understanding ("MOU") with Metso Minerals (Australia) Limited ("Metso") for the Southdown Magnetite Project.
Considered by the parties to be a first for the mining and minerals processing industry in Australia, this MOU allows Grange and Sojitz to access Metso's comminution, iron ore processing and pelletising design capabilities at the initial design phase of the project.
Metso is a leading global engineering and technology corporation with extensive credentials and track record in rock and minerals processing,
Comminution is the specialist mineral processing technique used in extractive metallurgy that reduces rocks into smaller particles or powder. Metso is a world leader in this field and accessing their expertise in the initial design phase of the project ensures that the processing plant will incorporate the latest technology to produce a high quality iron ore product.
The Southdown Project has been the subject of ongoing feasibility studies since January 2005 and comprises a magnetite mine and concentrator at Southdown, Western Australia, a slurry pipeline from Southdown to the Port of Albany with storage and shipping facilities at the port. The Southdown concentrates will be shipped to a pellet plant to be constructed at Kemaman on the east coast of peninsular Malaysia.
On progression of the project, Metso's services will extend to the timely supply of major process plant equipment, supervision of installation and commissioning and training of operational personnel. Metso will also provide performance guarantees for the entire process route.
Metso is currently undertaking testwork on samples from Southdown in Australia, the United States and Europe to determine the optimum processing circuit for the project.
In addition, separately from this MOU with Metso, basket tests on pellets are being undertaken to confirm previous tests that demonstrated high grade, direct reduced iron (DRI) can be produced from the Southdown pellets.
An integrated team from Grange and Sojitz is currently preparing contract documentation to ensure the selection of preferred construction, supply and design delivery partners by the end of the second quarter 2008.