- Approximately 25% equity interest in Century
- Further investment of C$40M to earn in 40% interest in each of the JV projects
- 60% off-take for all JV projects
- 70% debt ﬁnancing to be arranged
Wuhan Iron and Steel (Group) Corporation (“WISCO”) was founded in 1955 and began steel production in September 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 the Company which amounts to 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 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).
In addition, WISCO also committed to a 60% off-take of production from the JV projects.
For more information about the WISCO-Century Relationship please see the 2014 Annual Information Form.