FORTESCUE Metals Group Ltd has signed a further three iron ore sales agreements, with three of China’s top 10 steel mills agreeing to take a total of 3 million tonnes per annum, the company says. The news came on the back of Fortescue securing environmental approval to develop the Cloud Break deposit. The agreement terms with the Chinese mills are all for 10 years with prices based on the industry standard of annual benchmark pricing. Fortescue now has sales agreements for 39.5 million tonnes per annum, which represents 88 per cent of expected initial production of 45mt/year. The profile of Fortescue’s counterparties include 11 of China’s currently ranked top 20 steel mills. Last week, Fortescue secured a $534 million equity deal with New York investment group Leucadia National Corporation, after a similar deal with Hong Kong’s Noble Group fell through.
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.