Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has decided to participate in a feasibility study of the Hawsons Iron Ore Project ("the project") managed by Carpentaria Resources Limited and Pure Metals Pty Ltd. The three companies entered into an agreement on August 2, 2018. Mitsui will take on 20% of the feasibility study costs necessary for this project in exchange for the option of acquiring off-take rights to collect 20% of production quantity when commercialized.
The project is a new development in an undeveloped mining area located near Broken Hill, New South Wales, Australia, and aims to produce initially approximately 10 million tonnes of high-grade ore per year. It is expected that the project will help meet demand for the high-grade iron ore, forecast to be in tight supply worldwide. In addition, the iron ore produced is expected to have low production costs and be highly competitive in price as it is uniquely soft ore with relatively easy liberation, making the beneficiation process simple.
By contributing to the stable supply of high-grade iron ore, which is expected to see increased demand and has low environmental impact, Mitsui will respond to the needs of customers. Mitsui also aims to strengthen functionality in iron-ore trading through the acquisition of off-take rights.