Highlights
- Approximately 25% equity interest in Century
- Investment option of C$40M for each of the joint ventures to earn a 40% interest (earn in to Attikamagen joint venture is complete)
- Up to 60% production off-take from joint ventures
- Potential for up to 70% project financing
Wuhan Iron and Steel (Group) Corporation (“WISCO”) was founded in 1955 and began steel production in 1958. WISCO, the first ultra-large integrated iron and steel company established under the People’s Republic of China, is one of China’s major state-owned enterprises and under the direct control of the Central Government and the SASAC (State-owned Assets Supervision and Administration Commission of the State Council).
WISCO has an annual iron and steel output of nearly 40 million tonnes and in 2012 ranked 321st on the Forbes Global 500 list. Looking to the future, WISCO expects to raise its annual steel production capacity to 60 million tonnes.
The WISCO-Century Relationship
Century’s strategic partnership with WISCO is formalized through various agreements.
On January 13, 2011, Century and WISCO entered into a Framework Agreement setting out the strategic relationship between the two companies, including WISCO’s equity investment in Century of approximately 25%.
WISCO and Century also agreed to the execution of joint venture agreements for the Attikamagen JV Properties, the Sunny Lake JV Properties and the Duncan Lake Property. Subsequently, three joint venture companies were established; Labec Century Iron Ore Inc. (Attikamagen), WISCO Century Sunny Lake Corporation (Sunny Lake), and DLJV Iron Ore Corporation (Duncan Lake).
Additionally, WISCO committed up to a 60% production off-take from Attikamagen and Sunny Lake Properties.
More about WISCO-Century see 2015 Annual Information Form.
