Baosteel Pulls the Plug on Multi-Billion-Dollar Iron Ore Project
12/23/2015 - China’s Baosteel and its partners are mothballing a proposed US$5.4 billion iron ore project in Australia on account of market conditions, reports BloombergBusiness news service.
According to Bloomberg, the partners have decided to stop work on a feasibility study for the West Pilbara mine, rail and port project. The proposed mine has total reserves of more than 2 billion tons and was expected to produce about 40 million tons of iron ore annually, Bloomberg said.
Aurizon Holdings Ltd., the project’s railroad partner, told Bloomberg that current market conditions and uncertainty about future supply and demand were central to the decision.
In addition to Aurizon and Baosteel, the other partners are South Korean steelmaker POSCO and trader and producer American Metals & Coal International. The partners had announced in May that they would defer a decision on whether to proceed until late next year subject to market conditions, Bloomberg said.
Aurizon Holdings Ltd., the project’s railroad partner, told Bloomberg that current market conditions and uncertainty about future supply and demand were central to the decision.
In addition to Aurizon and Baosteel, the other partners are South Korean steelmaker POSCO and trader and producer American Metals & Coal International. The partners had announced in May that they would defer a decision on whether to proceed until late next year subject to market conditions, Bloomberg said.
