Monday, February 8, 2010

Aurox Resources Signs $1.8 Billion Magnetite Deal

Australian iron ore miner Aurox Resources says it has signed a deal with Metallurgical Corp of China (MCC) to construct the $1.8 billion Balla Balla magnetite iron ore project near Port Hedland in Western Australia. MCC will also help Aurox secure Chinese funding for the project and Aurox expects the funders to take a stake in the project.

Aurox currently has commitments to sell 6 million tonnes of magnetite a year to Chinese companies.

The concentrate, which would have a grade of 57.7 per cent iron ore, would be piped 110km to Port Hedland.

Iron ore production is expected to hit 10 million tonnes a year by 2015, by which time the mine will also be producing 7000 tonnes a year of ferrovanadium at a grade of 80 per cent and 470,000 tonnes a year of ilmenite concentrate containing 45 per cent titanium dioxide.

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