Atlas Iron has announced three new off-take agreements, covering more than 2.2 million tonnes of iron ore each year.
The contracts were signed with two Chinese steel mills and an international trading house, Atlas managing director Ken Brinsden said in a statement.
Pricing for the contracts is based on the benchmark 62 per cent Fe index, adjusted for iron content and discounted for impurities, Mr Brinsden said.
“The new contracts and Asia-wide interest reflect strong demand for Atlas’ product and the company’s growing reputation as a reliable producer,” he said.
Atlas said negotiations were also ongoing regarding increasing sales tonnages under longer term contracts.
At close of trade today, Atlas shares were up 3 per cent, trading at $1.56.