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Potential funding lined up for West Pilbara iron-ore project

18th November 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - China’s Baosteel and its partner Aurizon have signed a memorandum of understanding (MoU) with Australian financial institution ANZ and the China Development Bank for the potential development of the West Pilbara iron-ore project.

Baosteel and freight transporter Aurizon acquired the West Pilbara project as part of its June takeover of then-listed Aquila Resources, in a deal that valued the takeover target at about A$1.4-billion.

At the time of the takeover offer, Baosteel vowed that it would quickly progress Aquila’s major assets, including the West Pilbara iron-ore project, with the Aurizon partnership allowing for significant economic benefits in allowing the developments.

Stage 1 of the West Pilbara project would require a capital investment of A$5.7-billion to deliver about 30-million tonnes a year of iron-ore, over a 15-year mine life.

ANZ said in a statement that the MoU covered the potential development of the West Pilbara mine, processing, rail and port infrastructure, as well as a new deep-water port at Anketell and a 280 km railway.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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