African Iron Ore Group Limited announces it has signed a memorandum of understanding with China Machinery Engineering Corporation. CMEC is China's leading power plant infrastructure exporter with extensive expertise in the design and construction of power generation and distribution infrastructure facilities and capabilities.
Under the terms of the MoU, CMEC has been appointed to join the best in breed Chinese consortium members AIOG is assembling in conjunction with China Railway Group (as announced on April 19th 2012) to provide infrastructure solutions for Central and West African iron ore projects. CMEC will provide the power components of the infrastructure solutions for AIOG projects. CMEC have also agreed to provide structured financial support to the infrastructure projects, through the use of deferred payment and other appropriate financing structures in association with the other consortium members.
While the immediate focus will be the Simandou South iron ore mining and related infrastructure project, the strategic partnership announced will in time, and as appropriate, take in the full range of AIOG African iron ore projects under negotiation as and when they are brought under contract.
Mr Ethelbert Cooper, founder and chairman of AIOG, said that "We are delighted to announce this partnership with CMEC, one of the leading power plant infrastructure companies in the world. Long term, sustainable power supply will be critical to providing successful infrastructure solutions and we believe CMEC, with its extensive capabilities, is best placed to deliver this."
Mr Zhang Chun, president of CMEC, also said that "It is our pleasure to be AIOG's strategic power solutions contract partner in this important African mission to unlock iron ore exports. CMEC has adequate financial and technical capabilities for this purpose and strong confidence in undertaking large power plant projects in Africa. We are therefore ready to cooperate comprehensively with AIOG in the development of power solutions that will make iron ore export programs a reality in the several African countries AIOG is targeting in its plan."