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Magnetite Mines Ltd to install pipelines with Chinese contractor

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Magnetite Mines Ltd’s (ASX:MGT) consortium-partner Lodestone Equites Limited signed a non-binding agreement with China Petroleum Pipeline Bureau (CPP) for designing, financing and constructing overland slurry pipelines and water supply pipelines to the Mawson Iron Province in South Australia.

CPP is a large Chinese contracting company with annual revenues in excess of US$5 billion and brings in the experience and capacity to undertake large-scale pipeline projects internationally. CPP is part of the China National Petroleum Company.

The Mawson Iron Project is controlled by the South Australian Magnetite Consortium consisting of MGT and Lodestone. They are developing the Braemar Formation at the Mawson Iron Province, which is a large magnetite area.

Lodestone, through its subsidiaries, owns outright or has exclusive iron rights to prospective tenements containing Braemar iron formations.

Collectively, the ground has Braemar iron formations with a prospective strike length of over 200 kilometres and a large exploration potential.

The new piping systems can be used by the consortium and other companies wishing to use such infrastructure.

Lodestone also owns Braemar Infrastructure Pty Ltd, which is developing cost effective methods of transporting and shipping magnetite concentrate in and from South Australia.

MGT and Lodestone intend to simplify their corporate structure and merge all their South Australian entities into one listed company.

The development of the slurry pipeline system for transporting magnetite concentrates is expected to benefit the consortium, considering the demand for high grade magnetite from the global steel industry.

The share price of MGT has increased by more than 55% since the beginning of this month.

 

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ASX:MGT
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