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Gindalbie Metals has signed a deal with its Chinese joint venture partner to potentially develop metallurgical coal, manganese, chromite and nickel projects, and pellet plants and steel mills, in Australia.
Under a non-binding memorandum of understanding, Anshan Iron and Steel Group (Ansteel) and Gindalbie will collaborate to target new resource development opportunities in Australia beyond their Karara iron ore joint venture in Western Australia's midwest region.
"The assets to be targeted will primarily be in the carbon steel materials sector ... as well as downstream processing opportunities such as pellet plants and steel mills," Gindalbie said in a statement on Wednesday.
"Ansteel has already signed an agreement with the Western Australian Government to undertake a feasibility study into the construction of an integrated iron and steel plant and rolling mill at the Oakajee industrial estate near Geraldton."
The Oakajee development is centred on a new, long-awaited deep water export port.
"Ansteel will contribute its extensive experience as a global iron ore and steel company and access to capital to potential joint development opportunities which can provide it with long-term sources of supply of raw materials from Australia," Gindalbie said.
"Gindalbie will contribute its geological and resource project expertise, contacts and knowledge base within the Australian resource sector to actively identify, explore and develop quality resource projects."
Gindalbie managing director Garret Dixon said the Perth-based company had identified several opportunities in the carbon steel materials space "and we intend to step up our search for new projects over the months ahead".