Merger will strengthen WA’s iron ore capacity

May 27, 2008

May 27 (ABC Rural) – Two major iron ore companies Western Australia have agreed to a $3 billion merger, bringing together two of the world’s biggest steel-making nations, Japan and China. Midwest Corporation and Murchison Metals have neighbouring iron ore tenements and would collectively own eight projects in the region.

Midwest has supply arrangements with Chinese Steel trader Sinosteel, while Murchison Metals has agreements with Japan’s Mitsubishi group. The merged entity would value each share at $7.17. Paul Kopejka, from Murchison Metals, says the merger will help turn the Mid-West region into a world-class iron ore producing region.

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