West Perth-based iron ore explorer Territory Iron Ltd will provide all ore from its Frances Creek Project to Hong Kong-based Noble Group after securing a life-of-mine offtake agreement with the company.
The new agreement supersedes the previous interim marketing arrangements between Territory and Noble, which was assigned from OM Materials to Noble.
Noble had earlier backed Territory's takeover bid for manganese and nickel miner Consolidated Minerals Ltd.
The full text of a company announcement is pasted below
Australian resources group Territory Resources (ASX:TTY) has secured a life-of mine off-take agreement with global supply chain managers, Noble Group, for all iron ore produced at its Frances Creek Project in the Northern Territory.
Territory Chairman Michael Kiernan said the agreement provided Territory shareholders with exceptional market access through one of the world's largest supply chain and trading organisations.
"Noble are market leaders in global supply chain management, with direct marketing networks and connections in China, so are perfectly placed to take Territory Resources' high grade iron ore to the world," he said.
The agreement supersedes the previous interim marketing arrangements between Territory and Noble, which was assigned from OM Materials to Noble. Under the new supply agreement, Noble will be supplied all Territory Resources ore from the Frances Creek mine on a FOB Darwin basis
Vice Chairman of Noble Group, Harry Banga, said Noble was pleased to put in place the agreement with Territory, and said Frances Creek was well placed to capitalise on the iron ore demand.
"Noble has a strong history of iron ore trade into China, with direct links with steel mills, and we look forward to the opportunity of making Territory Resources an expanding supplier to this market," he said.
"The world demand outlook for iron ore remains strong in our view. Demand from China remains high and we are forecasting it will import about 50 million tonnes more in 2007, than the previous year," Mr Banga said.
Territory Resources last month delivered the first ore from the Frances Creek project at Darwin, and is anticipating its first shipment of ore to China in the September quarter.
