Northern Iron, Sinosteel in iron deal

West Perth-based Northern Iron has further strengthened its relationship with Sinosteel, signing a spot sales contract to sell iron ore to the Chinese market.

Northern Iron today said the concentrate will be sold to Sinosteel for the Chinese market on a spot basis, with pricing referenced to a published index price as adjusted for grade and quality.

Tonnages will be committed on a monthly basis for the remainder of this year and then on a quarterly basis from next year.

"This contract is in line with the company's policy of selling approximately 60% of sales from 2010 on benchmark contracts and the remainder on the spot market," Northern Iron said.

The company already has a one-year benchmark offtake contract in place for 500,000 tonnes with Sinosteel.