Formosa invests $1.15b in Fortescue-baosteel JV
Formosa Plastics Group will invest $1.15 billion in the Iron Bridge project by Fortescue Metals Group. The project is a joint venture between Australian iron ore producer Fortescue, with 88 percent of the shares, and a subsidiary of Shanghai Baosteel Group Corp with 12 percent of the shares. Under the agreement, Formosa, through subsidiary Formosa Steel, will acquire a 31-percent unincorporated joint venture interest in FMG Iron Bridge Joint Venture and fund the first $527 million of capital expenditure on the project development. The MG Iron Bridge joint venture owns the North Star and Glacier Valley iron ore deposits in Western Australia, a combined iron ore resource of 5.2 billion tons.