It is reported that the Taiwanese firm, Formosa Plastics Group has agreed to buy nearly a third of a new iron ore project in Australia.
The FMG Iron Ore Bridge project in Western Australia is 88% owned by Fortescue and 12% by Baosteel.
Formosa is reported to get a 31% stake from their total investment of US$1.15 billion.
Formosa, which is building a steel mill in Vietnam has agreed to buy up to 3 million tons of iron ore when steelworks is commissioned.
The construction for the FMG Iron Ore Bridge project is expected to take 12 months for the first stage and start producing 1.5 million tons of iron ore annually in early 2015.
Part of the US$1.15 billion investment is that US$527 million of it will be for capital expenditure on the project.
