Anyone on this one? It is headed by Ian Burston, the same Chairman as Aztec Resources. They have already signed a few MOUs with some big Chinese firms. Also, an Indian firm, Essar Group, is looking into it as well.
Indian firm interested in Cape Lambert
November 17, 2006 - 5:47PM
Large Indian corporate house Essar Group is reportedly in discussions with iron ore hopeful Cape Lambert Iron Ore to build a pellet plant at its namesake project in Western Australia.
According to media reports out of India, Essar is looking to take a stake in Cape Lambert and build a pellet plant at the project site.
Cape Lambert declined to comment, but sources close to the company confirmed that representatives for Essar have conducted due diligence on the project and had meetings with Cape Lambert management.
Essar has interests in the manufacturing and service sectors including steel, oil and gas, shipping and construction.
Cape Lambert is looking at a potential 15 million tonne per annum operation coming onstream by 2009 and costing about $600 million.
A pellet plant could add a further $1 billion to the capital cost.
Ironically, Cape Lambert chairman Ian Burston ruled out the construction of a pellet plant at a briefing in August, citing the added cost would put a big question mark on project economics.
Cape Lambert has signed non-binding agreements with three Chinese outfits for potential equity stakes in the company and offtake from the project.
However, Cape Lambert has said it is in negotiations with other groups with a view to selecting a partner that it is not only committed to take ore, but also develop the project.
Shares in Cape Lambert edged one cent higher to close at 31.5 cents on Friday.