To: Ti Wang
From: Stuart Griffiths
CC: Sijun Cheng
Date: 23 Oct 2019
Re: Statements to WA Government and Media re purchase of CRL & OPR
Friday 18th Oct on completion of the purchase
(1) Again, advised WA government departments (State Development and the Mining Ministers Dept)
that Sinosteel had no plans to develop the Oakajee Port and Rail Project. Sinosteel Midwest is interested in reviewing the geological, hydrological, environmental work completed on the inland rail route from Mullewa to Weld Range. We have no interest in building a deep-water port at Oakajee but instead would study a rail spur that connects to the existing rail at Mullewa and ship through the port of Geraldton.
(2) Sinosteel Midwest website updated with the following statement
“Sinosteel continues its commitment to develop mineral resources in Western Australia, with the purchase from Mitsubishi Development Pty Ltd, the entities Crosslands Resources Pty Ltd (the owner of 3.89Bt JORC iron ore resource at Jack Hills) and Oakajee Port and Rail Pty Ltd (owner of intellectual property for the Oakajee Port and Rail Project). The Sinosteel Midwest Group of Companies now comprise: Sinosteel Midwest Corp Ltd (300Mt direct ship hematite resource at Weld Range), Crosslands Resources P/L & Oakajee Port and Rail P/L.”
(3) Media Statement: see attached.
(4) Points made to possible interview questions
Question: What is Sinosteel’s plans for OPR and CRL? Response: Sinosteel will now commence a thorough review of Crosslands’ Jack Hills magnetite project and the Oakajee Port and Rail Project.
Why did Sinosteel buy OPR and CRL? Synergies: Crosslands 3.9Bt magnetite resource extends further into Sinosteel Midwest joining mining tenement so there is upside to expanding this resource and it is very close to another 1Bt magnetite resource we have at Jack Hills. Sinosteel Midwest also has significant tenure at Jack Hills so designed infrastructure locations should improve and could be used for multiple deposits. Sinosteel Midwest’s Weld Range project (300Mt hematite resource) is also only 100km south of Jack Hills and is the next mine we plan on developing but this will be done while also considering the future development of Jack Hills resources.
Sinosteel will continue to work with its stakeholders and the government as we review these projects.
Monday 21st Oct Stuart Griffiths spoke to;
1. Peter Ker from the Australian Financial Review (AFR) 2. Jo Prendergast on the ABC Radio Geraldton 3. Adrian Rauso at the Business News
No more interviews or media statements are planned.
1. SMC Media Statement 2. Australian Financial Review (Monday 21st Oct) article on Sinosteel purchase of OPR & CRL
3. The West Australian News Paper, statement by the WA Regional Development Minister.