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Key points
- Fortescue has signed an agreement with China's Sinosteel
- The two parties will assess Sinosteel's Midwest Magnetite Project in Western Australia
- Fortescue sees opportunities for Fortescue Future Industries' green energy objectives
The Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch on Monday.
This follows the release of an announcement after the market close on Friday.
Why is the Fortescue share price on watch?
Investors may want to keep an eye on the Fortescue share price on Monday after it announced an agreement with China's state-owned Sinosteel.
According to the release, the two parties have signed a binding Memorandum of Understanding (MoU) to complete a rapid project assessment of Sinosteel's Midwest Magnetite Project in Western Australia. The assessment will include a rail and port development at Oakajee.
Following the conclusion of the 12 month rapid project assessment and subject to the outcome of that process, Fortescue will have the option to acquire up to 50% of the Midwest Magnetite Project and up to 100% of the proposed port and rail infrastructure project.
Fortescue's 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."
Ms Gaines also sees opportunities for its highly divisive Fortescue Future Industries business to leverage the operation.
She said: "We look forward to working with Sinosteel on the next steps for this important project for Western Australia which, in addition to the magnetite and infrastructure development, offers the opportunity for a co-ordinated project combining Fortescue's iron ore and infrastructure pedigree with Fortescue Future Industries' green energy objectives."
"Future development including a renewable, green hydrogen hub in the Midwest region at Oakajee would deliver a large-scale resources and renewables project for Western Australia, further underpinning our enduring relationship with China," Ms Gaines added.
