18/10/05
Thousands of new jobs in Western Australia's Mid-West region are a step closer to reality following the signing of a joint venture agreement between Midwest Corporation and one of China's largest State-owned trading companies, Sinosteel.
Attending the signing ceremony this morning, State Development Minister Alan Carpenter said the agreement also marked a significant milestone in the resources sector, with Sinosteel becoming the first Chinese investor in a WA iron ore project at a pre-feasibility stage.
The Project Studies Joint Venture agreement will see Midwest Corporation and Sinosteel fund scoping, pre-feasibility and bankable feasibility studies on a 50-50 basis for the $1.5billion Koolanooka Magnetite and Weld Range Hematite Projects in the Mid-West region.
Mr Carpenter said the two iron ore projects had the potential to create up to 2,600 construction and operation jobs in the State's Mid-West region.
"This agreement is a tremendous boost for the Mid-West region's burgeoning iron ore industry," he said.
"Midwest Corporation is already investing substantial funding in transport and storage infrastructure at key locations, particularly Geraldton and at its mine sites at Koolanooka and Blue Hills.
"And Sinosteel has shown it is serious about developing new sources of iron ore for supply to steel mills in China and is prepared to invest significant amounts of money in Australia to ensure it has a stable and diverse source of iron ore."
The Minister said the partnership was another indication of the growing strength of WA's trading relationship with China, our second largest trading partner.
"WA has a broad range of mineral and energy resources which are in great demand by China as it continues its rapid rate of economic growth and development," he said.
"Its market demands have seen a significant increase in WA's exports, up from $4.4billion in 2003-04 to $6.55billion in 2004-05, with iron ore our top ranking export.
"This agreement between Sinosteel and Midwest Corporation is another opportunity for WA and China to work together towards developing large new resource projects which bring great benefits to both sides."
Mr Carpenter said Midwest Corporation was emerging as a potentially significant iron ore producer in WA's resources sector with the company making significant progress over the past 18 months in human resourcing, infrastructure, exploration and operations in the State's Mid-West region.
He said Sinosteel was one of the two largest State-owned resource and metals trading companies in China, while heading a major five-party consortium with approximately US$2billion in investment funds earmarked for WA resource development projects.
WA has a long-standing and highly valued relationship with Sinosteel through the Channar Joint Venture and State Agreement signed in 1987.
Through the Channar Fund, established as part of the Agreement, important research has been sponsored between the two countries over the past 15 years.
Minister's office: 9222 9699
