The Canadian Press reports on Friday that two Chinese state-owned companies have invested in privately-owned Century Iron’s plans to export iron ore extracted at several properties in Quebec and Newfoundland and Labrador in eastern Canada in exchange for roughly 30% of the firm.
The transactions are part of $115.5m of financing arranged by Century Iron through private placements and the amalgamation of Century Iron Mines Corp. and Century Iron Ore Holdings.
“CEO Sandy Chim said the transactions bring together strategic partners to support Century Iron’s goals of becoming a major Canadian iron ore producer.
“Our strategic partners, WISCO and Minmetals, represent the strength of China in terms of steel making, mining and commodity trading,” he stated.
Obtaining the capital will provide Century with the scale to reduce operating expenditures per tonne and allow it to operate competitively at any point of a commodity cycle, Chim added.”