Australia's Red Hill Iron to sell JV stake Mineral Resources unit for $294 mln

Red Hill Minerals

02/08/2021 01:32

Aug 2 (Reuters) - Australian iron ore explorer Red Hill Iron
Ltd  RHI.AX  said on Monday it would sell its entire 40% stake
in Red Hill iron ore joint venture (RHIOJV) to a unit of peer
Mineral Resources Ltd  MIN.AX  for A$400 million ($293.7
million).
    Red Hill said it had made the decision after it was unable
to reach an agreement on further developing the project with an
entity involving Aquila Resources and POSCO.
    The company said it believed Mineral Resources "can provide
the necessary impetus to get a mining operation underway... to
ensure that a mining proposal can be funded and implemented."
    Mineral Resources would pay the consideration in two
instalments and Red Hill would get royalty payments for revenue
generated from iron ore extracted and sold from RHIOJV, it
added.
    The remaining 60% stake in RHIOJV is held by API Management,
which is controlled by Shanghai-based Baosteel Group Corp and
American Metals & Coal International. 

($1 = 1.3620 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Rashmi
Aich)
 ((Tejaswi.Marthi@thomsonreuters.com;))