FMG and Sinosteel (Magnetite) MOU

Fortescue Metals Group Ltd (Fortescue, ASX: FMG) and Sinosteel have signed a binding Memorandum of Understanding (MoU) to complete a rapid project assessment of Sinosteel’s Midwest Magnetite Project, with the assessment to include a rail and port development at Oakajee

At the conclusion of the 12 month rapid project assessment and subject to the outcome of that process, Fortescue has the option to acquire up to 50 per cent of the Midwest Magnetite Project and up to 100 per cent of the proposed port and rail infrastructure project. Fortescue Chief Executive Officer, Elizabeth Gaines said, “For over three decades, Sinosteel has demonstrated their strong performance and ability to deliver mining projects in Australia including their Channar Mine in the Pilbara.

“The signing of this MoU demonstrates Fortescue’s commitment to our strategic pillars of investing in the long-term sustainability of our iron ore business, expanding into new regions and continuing to deliver strong returns to our stakeholders

Thoughts? Why is FMG looking at magnetite now..hmm...