A new $162.06 million joint venture between Australian iron ore miner Gindalbie Metals and Chinese company Ansteel is an example of how international investment can help the Australian mining industry, Gindalbie chairman George Jones said.
The share placement deal last week received approval from Federal Treasurer Wayne Swan, and according to Jones is a key step towards development of Gindalbie’s Karara Iron Ore Project in Western Australia.
“The Karara project is a textbook example of how Chinese investment can help maximise the value of Australia’s resources,” he said
“Ansteel’s help in developing Karara is creating jobs for Australians, generating much-needed revenue for governments, and supporting new common-user infrastructure like Oakajee Port.
“The Chinese are a valuable source of funding and can play a vital role in the growth of Australia’s resources industry.”
The deal’s approval and the subsequent development of Kara means that shareholders will see the benefits of the new infrastructure sooner rather than later, Gindalbie managing director Garret Dixon said.
“Already we have placed orders for all the long-lead items and we are finalising various agreements and contracts,” he said.
“Engineering and design work across all aspects of the project and its related infrastructure is underway, and in some cases even finished, which means that once we get on site, shareholders should be able to see some very rapid progress.”