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MCC digs deal for ore Down Under

(China Daily)
Updated: 2007-01-25 11:46

China Metallurgical Group Corp (MCC) yesterday won a contract to develop an iron ore mine in Australia, the largest mine construction contract awarded to a Chinese company to date.

The agreement with CITIC Pacific Ltd will see MCC construct the SINO Iron Ore Mine in Cape Preston, Western Australia.

The SINO Mine, funded by investment fromHong Kong-based CITIC Pacific Ltd, will mainly extract magnetite ore. Total investment is estimated at $1.98 billion.

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The mine holds large iron ore reserves and has a port nearby, the company said.

The contract will further boost the company's traditional engineering, procurement and construction (EPC) businesses, it said.

"It is the largest mine construction contract awarded to a Chinese company," said a company statement.

MCC has already established a reputation for construction in developing countries. It helped build Pakistan's first non-ferrous mineral development complex, the Saindak Copper Mine.

The company is now ranked 26th on the list of the world's top 225 contractors. It posted 90.1 billion yuan in revenue for 2006, up 30 percent from 2005.