Fortescue adds 8mt sales agreement

Fortescue Metals Group Ltd advises that it has signed additional sales agreements representing an aggregate of 8 million tonnes per annum with a further six steel mills.

The company said this deal brings the total sales agreements signed by Fortescue to date to 25 Mt/a representing
56 per cent of Fortescues initial planned production of 45 Mt/a.

These agreements are for terms of 10 years and prices have been set with reference to industry standards.

The names of the counterparties were not disclosed however Fortescue said that three of the companies are
ranked within China's top 25 major steel mills.

"Increasingly the international steel industry is seeking to establish long term supply relationships with alternative sources," the company said.