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As part of its strategic planning to participate in off-shore mining development, Sinosteel Corporation entered into a joint venture agreement with Midwest Corporation Limited on October 18 2005.
This Studies Joint Venture Agreement involves the Weld Range Hematite and Koolanooka Magnetite projects in the Mid-West region of Western Australia.
The Sinosteel-Midwest Joint Venture is a landmark overseas agreement for the development of iron ore in which a Chinese company has the ability to own a 50% interest in the projects. Sinosteel will also participate in the development of infrastructure such as rail, port and plant.
Sinosteel Australia Mining Pty Ltd was incorporated in November 2005 and is a wholly owned subsidiary of Sinosteel Corporation.
Sinosteel-Midwest Management
Sinosteel Australia Mining holds 50% of the equity in Sinosteel-Midwest Management Pty Ltd. Sinosteel-Midwest Management is the joint venture entity owned jointly by Sinosteel Corporation and Midwest Corporation Limited.
Under the joint venture agreement Sinosteel-Midwest Management is responsible for the feasibility studies, exploration and development of its Weld Range Hematite and Koolanooka Magnetite projects.
In keeping with the core business activities of Sinosteel Corporation, the joint venture company has the following goals:
- Foster the development of the relationship with Midwest Corporation
- Facilitate and implement the development of the Weld Range and Koolanooka Magnetite projects
- Facilitate and oversee the development of infrastructure agreements to assist the joint venture
- Share the knowledge and experience attained through these activities with the Sinosteel Corporation network
- Expand Sinosteel's mining interests in Australia
- Through prudent use of the capital markets, facilitate the development of international resources for Sinosteel Corporation.
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