ISR Capital signs MOU with Chinese firm for Madagascar project

MAINBOARD-listed ISR Capital has entered into a non-binding memorandum of understanding (MOU) with China Nonferrous Metal Industry's Foreign Engineering and Construction Co (NFC) to commence negotiations on potential developments for its 75 per cent-owned rare-earth mining concession located in north-western Madagascar, Africa.

NFC is a Chinese state-controlled company listed on the Shenzhen Stock Exchange, specialising in the fields of nonferrous metal industries and projects worldwide.

The MOU sets out the framework for discussion, including the purchase by NFC of up to 3,000 tonnes of the Madagascar project's output within the first three years of successfully commissioning production facilities. This is subject to the products meeting the quality requirements for the Chinese market, which will be determined by an independent surveyor.

Under the MOU, NFC will also provide engineering procurement and construction services, and potentially invest in the project. The MOU will expire two years from its commencement date.