Shandong Steel has signed MoUs with Shandong-based Xinwen Mining Group and Hong Kong-based Honbridge Holdings to jointly develop the SAM iron ore project in Brazil. Xinwen Mining Group will be responsible for the prospecting and preparation work before the start of the project and for negotiations on coordination of iron ore exploitation after the start of formal operation of the project. After the completion of prospecting activities, Shandong Steel will invest in the exploitation of the project. The Brazil-based SAM iron ore project, previously owned by the South American VNN Co., has a reserve of 6.2 billion tonnes of specular hematite iron ore, located in the state of Minas Gerais. In March this year, Honbridge Holdings obtained the exploration rights for the project, which is expected to have an annual capacity of 25 million tonnes of iron ore concentrate.