Taipei: Taiwan’s largest private company Formosa Plastics formed a jv with Fortescue Metals, and will invest US$1.15bn to build the Iron Bridge project in south of Port Hedland, Western Australia.
Formosa will acquire a 31% interest in the jv for $123m and fund a further $527m to develop the project.
In addition, the Taiwanese company has agreed to purchase up to 3 million tons of iron ore every year, and supply 22 million tons a year to its Ha Tinh steel mill in Vietnam.
Formosa will have an option to prepay $500m to Fortescue's subsidiary Pilbara Infrastructure to access its port facilities at Herb Elliott. [19/08/13]
