It is reported that Centrex Metals Ltd has completed a joint venture deal with Chinese steel producer Wuhan Iron and Steel to develop new iron ore mines on South Australia's Eyre Peninsula.

This joint venture will allow exploration and development studies on two magnetite projects on the Eyre Peninsula to begin immediately."

WISCO has now paid AUD 102 million into the deal that aims to establish two magnetite iron ore mines within four to five years, each producing 5 million tonnes of ore a year.

The handover is the first part of AUD 261 million commitment by the Chinese company to explore and develop iron ore projects on Eyre Peninsula.

The two companies have also committed to developing a deep water port.

Mr David Klingberg chairman of Centrex said that the joint venture is significant news for the local community and for South Australia.

He said “We are very pleased with the relationship that has developed with WISCO during the extensive negotiations and we look forward to a successful enterprise.”

(Sourced from AAP)