Bibra Lake-based mining services company Mineral Resources Ltd subsidiary Process Minerals International Ltd will sell a minimum of 280,000 tonnes of manganese per year to Chinese joint venture CITIC Dameng Mining Industries Ltd under a new sales contract
Bibra Lake-based mining services company Mineral Resources Ltd subsidiary Process Minerals International Ltd will sell a minimum of 280,000 tonnes of manganese per year to Chinese joint venture CITIC Dameng Mining Industries Ltd under a new sales contract.
The full text of a company announcement is pasted below
Diversified mining services and processing company, Mineral Resources Ltd through it's subsidiary Process Minerals International Pty Ltd has entered into an extended sales contract with CITIC Dameng Mining Industries Limited of China for the annual sale and export of a minimum of 280,000 tonnes of high grade manganese fines from PMI's manganese operation at Woodie Woodie, WA.
CITIC Dameng is a subsidiary of the CITIC Group and has established a joint venture with Guangxi Dameng Maganese to manage and operate the largest manganese mines in China and is one of the largest manufacturers and suppliers of manganese products in the world.
The PMI operation has been pro ducing manganese concentrate and exporting it to China for the past two years. The contract with CITIC represents a clear recognition of the strength of the relationship between the two companies and the projected longer term strength of the manganese market in China. The contract was signed in Hong Kong on 29 January , 2007 and is the culmination of more than three years discussion and resolution of an effective partnering relationship.
PMI has committed to export the manganese fines from the Port Hedland Berth in 40,000 mt shipments with the initial delivery under this contract programmed for March 2007.
CITIC has previously purchased and successfully trialed the use of 44,000 mt of the high grade/low impurity PMI Woodie Woodie manganese fines as a blend material to upgrade the quality of its lower grade, local manganese feed product within China.
CITIC is the largest producer and user of manganese concentrate in China. It operates ferro alloy plants and steelwork plants with significant manganese utilization.
The contract incorporates a quarterly pricing review mechanism and, with the price of manganese firming, provides both companies with long-term security of supply and pricing within a mutually beneficial and committed partnership.
The two companies are also engaged in discussions in respect of the processing and sale of other mineral commodities and are pursuing areas of mutual interest and benefit within the resource and processing industries.
Mineral Resources Ltd is a leading, integrated, Australian based mining services and processing company with operations in contract crushing, general mine services, infrastructure provision and recovery of base metal concentrate for export. Operations are supplemented by rehabilitation and sale of heavy duty crushing and processing equipment, hire of engineering and crushing fleet plant and workshop manufacture of polyethylene pipe fittings and components.
Comprising three long standing core businesses, PIHA Pty Ltd, Crushing Services International Pty Ltd and Process Minerals International Pty Ltd, Mineral Resources Ltd has developed a strong reputation for the cost effective delivery of its services and products to the resources and infrastructure sectors.
Mineral Resources Ltd was admitted to the official list of the Australian Stock Exchange on 28 July 2006.
