WISCO Buys 2bn Tonnes Of Iron Ore Reserves

Reserves Bought In Madagascar

Chinese steelmaker, Wuhan Iron and Steel, has purchased reserves of two billion tons of iron ore, according to the country's National Development and Reform Commission. The purchase increases the company's reserves of iron ore to four billion tons.

The iron ore were acquired from the Soalala Iron Ore Deposit in Madagascar and the reserves were purchased the in conunction with Guangdong Foreign Trade Group and Kam Hing International Holdings

China Approves Centra-WISCO JV On Eyre Peninsula

WISCO To Take Stake In Enlarged Centrex

The Chinese government has approved a joint-venture on the Eyre Peninsula in South Australia between Wuhan Iron and Steel (Wisco) and Australian iron-ore miner Centrex Metals.


All the conditions surrounding the joint venture have now been met and Centrex is targeting the deal to be closed by the end of May.


Under the terms of the agreement, Wisco will earn a 60 per cent interest in the iron-ore rights of five of Centrex’s exploration tenements on the Eye Peninsula for a total investment of A$271-million.


Wisco is to invest A$75-million of the total investment capital into sole funding of the exploration of the joint venture and will take a 15 per cent direct equity stake in the enlarged capital of Centrex.

Other points to note in the deal:

- WISCO is to pay Centrex A$51.5 million on completion (A$ 0.5 million deposit already paid) and a further A$ 26 million on the first anniversary of the completion (total A$ 78 million).

- WISCO is to pay four further payments of A$ 27 million if and when the JORC Inferred Resources for the project reach 1.25Bt, 1.5Bt, 1.75Bt and 2.0Bt respectively (up to an additional A$ 108 million).

- WISCO is to additionally sole fund the first A$ 75 million of exploration for the Joint Venture.

- WISCO is to assist with project financing for construction.


The two companies have also signed a heads of agreement to develop Centrex’s Sheep Hill port facility on the peninsula which would seek approval for the development of a Cape-sized vessel capable, deep-water port facility for use by the joint-venture and other exporters.

WISCO Receives Approval For Purchase Of MMX Stake

Wuhan Iron and Steel Company (WISCO), China's third biggest steel maker, will complete its acquisition of a stake in Brazilian iron ore miner MMX on 26 February. The company will then commence the construction of a steel mill in Brazil, the first overseas project for a Chinese steel company.

WISCO is paying US$400 million for a 21% stake in the enlarged share capital of MMX. The funds will be used to construct the mill, which will have a capacity of 5 million tons per annum and will be located in the new port of Acu, north of Rio de Janeiro. The purchase of the MMX stake will enable WISCO to succeed in its primary aim of securing iron ore resources.

The deal follows a memorandum of understanding WISCO and MMX signed in May 2009, which includes a 20-year contract for the sale and purchase of iron ore.