Most popular WISCO 800million Canadian iron ore se

2022-08-07
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Wuhan Iron and steel (Group) Co., Ltd. (hereinafter referred to as Wuhan Iron and steel) which has successively purchased mineral resources in Australia, Brazil and Canada in the past two years has once again taken a fancy to new mineral resources and mining companies in Canada. Adriana Resources Inc, a listed Canadian mining company, announced yesterday that the company has cooperated with WISCO

Wuhan Iron and steel (Group) Co., Ltd. (hereinafter referred to as "WISCO") which has successively purchased mineral resources in Australia, Brazil and Canada in the past two years has once again taken a fancy to new mineral resources and mining companies in Canada

Adriana Resources Inc, a listed Canadian mining company, announced yesterday that the company has reached a binding framework agreement with WISCO international resources development and Investment Co., Ltd., a subsidiary of WISCO group, and the two sides agreed to cooperate in the development, construction and operation of the lac otelnuk project in Canada

according to the announcement of Adriana, WISCO will invest 120million Canadian dollars (about 802million yuan) to occupy 60% of the shares in the joint venture to develop the lac otelnuk project. At the same time, WISCO will acquire 19.9% of the shares of Adriana through the additional issuance of Adriana, and can appoint a director

it is understood that lac otelnuk iron ore is located in Quebec, Canada, with a grade of about 30%. The variety is magnetite, and the storage capacity of glass fiber reinforced plastic is about 6 billion tons. Although the grade is average, the mining cost is low

adriana currently has iron ore resources in Brazil and Canada. Its goal is to become a comprehensive iron ore producer, and China is Adriana's main target market

according to the agreement between the two sides, after the feasibility study, WISCO will also seek about 70% of the loan for the project development fund. Previously, Adriana company disclosed that the development of lac otelnuk project would cost about $600million. However, this cooperation still needs to be approved by the Chinese government and regulators, and a final agreement should be signed

allen J palmiere, chief executive officer and CEO of Adriana Corporation, said that in the past 18 months, Adriana Corporation has been looking for strategic partners for the lac otelnuk project. WISCO's technical and financial strength will help accelerate the expansion of the lac otelnuk project

it is worth noting that on the day Adriana announced its cooperation with WISCO, Adriana's share price rose by 17% compared with that before the suspension

in fact, this is not WISCO's first investment in Canada. In July, 2010, WISCO invested US $240million to acquire the ownership of 29.7 million ordinary shares of CLM, another Canadian iron ore company, with a contractual 19.9% stake

WISCO officials pointed out that compared with other countries, Canada has a more relaxed investment environment. Canada's mining investment environment is very attractive to Chinese enterprises, especially for emerging mines. About 50% of the global exploration funds are obtained through Canadian exchanges

since the outbreak of the financial crisis led to the plight of global mining industry, WISCO has been looking for suitable acquisition targets all over the world. Compared with other steel giants, WISCO is the domestic steel enterprise that "goes out" to invest in mining industry the most frequently. It has been continuously deployed in Canada, Australia and Brazil, and the investment is basically a combination of joint-stock mining companies and joint-venture mining projects

WISCO insiders told this newspaper that the shortage of self-produced ores has always been the bottleneck restricting the rapid development of WISCO. As 80% of WISCO's iron ore needs to be imported, the group will increase the acquisition of overseas mineral resources. At present, WISCO has controlled more than 3 billion tons of ore resources in the world between the center of r-test piece and the center of disc rotating shaft. According to the current iron ore investment layout and equity mine situation of WISCO, WISCO expects to achieve "self-sufficiency" of iron ore within five years

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