Fortescue, Sinosteel sign deal to assess Western Australia iron ore project

Australia’s Fortescue Metals Group Ltd FMG.AX said on Friday it had signed an agreement with Sinosteel to complete a rapid assessment of the Chinese state-owned metals trader’s Midwest Magnetite project in Western Australia.

After completion of the year-long assessment, Fortescue has the option to acquire up to 50% of the project, the Australian iron ore miner said in a statement. The assessment will also include a proposed rail and port development project at Oakajee.

The agreement comes amid Fortescue’s push over the past year to transition itself from a pure-play iron ore producer to a green energy firm. It has signed a string of deals for green energy projects as it aims to become carbon-neutral by 2030.

Fortescue’s future development in the Midwest region would include a renewable, green hydrogen hub even as it seeks to develop the iron ore project, Fortescue Chief Executive Officer Elizabeth Gaines said.
Source: Reuters (Reporting by Arundhati Dutta in Bengaluru; Editing by Subhranshu Sahu)