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Gindalbie Metals Limited (GBG) and Sinosteel Midwest Corporation announced the signing of an agreement, which would provide a framework for sharing access to infrastructure and mine services for their neighbouring projects in Western Australia’s iron ore region. In a statement released by Gindalbie today it said the agreement, between Sinosteel Midwest and Gindalbie’s joint venture company Karara Mining Limited, is designed to enhance project economics and unlock synergies between the Karara Iron Ore Project and Sinosteel Midwest’s nearby Koolanooka/Blue Hills Project.

The company said both groups would gain mutual benefits from the arrangement, which would reduce capital costs and lead to lower operating costs through economies of scale, especially in relation to ore transport.

Gindalbie’s managing director, Garret Dixon and Sinosteel Midwest’s chief operating officer, Giulio Casello, said they believed the agreement represents a genuine win-win for both groups given the close proximity of their iron ore operations.

“I look forward to building a mutually beneficial long term relationship with Sinosteel Midwest in the years ahead, and working closely with them as our neighbours to implement the key terms of this agreement,” Mr Dixon added.

As at 1334 AEDT, Gindalbie shares were up 0.5c to 95.5c.

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