Fortescue Metals Group is considering developing its North Star magnetite iron ore project in Western Australia as a joint venture.
Fortescue last year indicated that it may spin off its magnetite iron ore assets because it was focused on easier-to-produce hematite iron ore.
However, on Monday the company said it saw potential value in developing its magnetite interests as joint ventures.
The miner said it was evaluating options to partner with third parties at its North Star magnetite project, which was adjacent to the company’s Glacier Valley magnetite iron ore joint venture with Chinese steel maker Baosteel.
Any development of North Star would be “on a non-recourse basis to Fortescue’s balance sheet”, Fortescue said in a statement.
The company also announced a 72 per cent increase in the resource estimate for its North Star magnetite project, 100km south of its Port Hedland operation, to 2.12 billion tonnes.
Of that total, 1.3 billion tonnes is in the inferred category of Australia’s mineral reporting code, which is the least “proved up” category.
Just over 100 million tonnes is in the top category, “measured”.
Shares in Fortescue were down 12 cents, or 2.53 per cent, at $4.63 at 1545 AEST.