Australian Fortescue Metals Group last week announced that Baosteel Trading Co Ltd has agreed to extend the completion date for the signing of a possible JV agreement between the pair for the joint development for a potential magnetite deposit would be delayed. The extension is in no way requiring of any regulatory approval or consent, as it is simply an agreement between the two companies.

Fortescue said "Negotiations have been progressing well, however, the agreement has not been concluded and accordingly both parties have agreed to extend the completion date for the agreement by up to a further 90 days."

Fortescue said in March 2007 that it had signed a MoU with Baosteel to develop a potential magnetite deposit in Fortescue's tenement holding in the Pilbara region of Western Australia and planned to formalize the MoU into a JV within 90 days. It said that “Additional time would be required to ensure the details of the exploration program and general development activities are more precisely defined.”

Fortescue said that this extension would not impact on the existing off-take agreement it has with Chinese company Baosteel Trading Co Limited. Fortescue stated that it has two existing agreements with Baosteel, one covering hematite iron ore off take commitments, while the other is the MOU. It said “Contrary to a media report in the weekend press, this mutual 90 day extension does not in any way impact on the off-take agreement with Baosteel for up to 20 million tonnes of iron ore from Fortescue’s Chichester Range mining operations.”