King & Wood Mallesons (KWM) has advised China Baowu Steel Group Co. Ltd (Baosteel) on its entry into a joint venture with Rio Tinto in respect of the development of the Western Range iron ore project in Western Australia.
Baosteel (46%) and Rio Tinto (54%) are expected to invest a combined $2 billion into the iron ore project, which is planned to reach first production in 2025.
Rio Tinto and Baosteel have also entered into an offtake agreement for the sale of up to 126.5 million tonnes of iron ore from Rio Tinto’s Pilbara iron ore operations.
KWM worked closely with Baosteel teams located in both Perth and Shanghai to negotiate all aspects of the transaction. The KWM team was led by energy and resources partner Tim Edwards and senior associate Matthew Clark with assistance from banking & finance partner Nathan Collins and corporate partner Nigel Hunt as well as Tracey Dembo, Angela Zhao, Sharon Ho, Ben Bartley and James Simpson.
Li Haoyuan and Lin Rongyue of King & Wood Mallesons’ Shanghai office also provided assistance.
Commenting on the transaction, Tim Edwards said:
“It is terrific to bring KWM’s cross-border capability to bear on a transaction like this, and a privilege to assist Baosteel on such an important project.”
Completion of the transaction is subject to regulatory approvals and other conditions.
