Canada's New Millennium Capital is inviting Chinese trading firm Sinosteel Corp and other mainland steelmakers to participate in its US$2.75 billion iron ore mine project in Canada. The Toronto-listed firm yesterday said it signed a non-binding memorandum of understanding with Sinosteel a year ago for a joint venture to develop, build and operate the LabMag iron ore project in Labrador. The project contains the world's largest undeveloped magnetic iron ore deposit with proven and probable reserves of 3.55 billion tonnes. It is expected to produce 15 million tonnes of pellets annually for about 65 years. 'We're still discussing the details with Sinosteel. No final agreement has been reached,' New Millennium president and chief executive Robert Martin said, adding the company also held talks with other Chinese steel giants over possible co-operation in the project. The firm hopes to introduce steelmakers, iron ore and steel traders, iron ore producers or even financial institutions specialising in the steel industry as the project's strategic partners, Mr Martin said. New Millennium has asked investment bank Miller Mathis and steel information service provider World Steel Dynamics to advise on the deal. The company owns 80 per cent of the project, with the rest owned by Naskapi Nation of Kawawachikamach. Mr Martin said the firm will keep a 25 per cent stake at the minimum. The project is expected to have a 15.8 per cent internal rate of return and a five-year payback period after commercial production begins in 2011.