CITIC Pacific joins race for Cape Lambert iron ore mineIt is...

CITIC Pacific joins race for Cape Lambert iron ore mine


It is reported that HK based CITIC Pacific has joined the race for Cape Lambert Iron's magnetite project on the Pilbara coast. Citic is the third major Chinese group eyeing the project, joining pipe maker Xingxing Iron Pipes and Beijing controlled SinoSteel as prospective partners.

Mr Ian Burston chairman of Cape Lambert confirmed that Citic would meet the company to discuss the massive project. Mr Burston however said that it was too early to comment on the nature of Citic's interest.

Cape Lambert has previously indicated it is in no hurry to lock in any deal with a major partner until it has better understanding of the true potential of its massive resource, thereby allowing it to extract a better deal for its shareholders. Cape Lambert has recently released fresh drilling results which confirmed the potential for a significant increase in the current JORC-compliant magnetite resource of more than 2.5 billion tonnes. The company envisions a $500 million plus mine and concentrator producing 15 million tonnes of high grade magnetite concentrate annually.

CITIC already hold mining rights to a billion tonnes of magnetite with Mineralogy's $2.5 billion Mr Clive Palmer's Cape Preston magnetite ore project which is 80 kilometer to the southwest of the Cape Lambert project.