Iron ore price slumps to three-week low on weak China demand, strong global supply
Property investment in China fell 10.1% in the first half of 2024 from a year earlier.
Chinese miner, Prosperity Minerals (PMHL.L), announced on Monday a US$25 million investment in Malaysian iron ore mines.
After the completion of the transaction, the company will hold an effective 3.5% interest in a iron ore operation.
All Wealthy owns a 70% interest in exclusive mining rights in the two Malaysian iron ore mines. It also owns a processing plant in Malaysia adjacent to the mines, which are currently under trial production with a future target production capacity of three million tonnes per annum.
Upon completion of the acquisition, Prosperity will secure the right, but not the obligation, to buy 9.5 million tonnes of iron ore over a 10 year period at a discount to the prevailing market price.
Prosperity Minerals is an iron ore operator serving the People’s Republic of China, as well as having real estate interests and investments in two cement plants.
