Tue, August16, 2011
Mount Gibson Iron has signed a major agreement for the sale of nearly half of all the hematite iron ore produced at its Extension Hill mine.
Under the deal, Glencore International will buy 48 per cent of ore produced at the mine for its entire operating life.
Production at the site north of Geraldton began this year, and with an offtake agreement now in place, Mount Gibson anticipates the first shipment of ore will leave the mine in coming months.
The company has been cautious in its negotiations with potential customers after several previous clients defaulted on sales agreements when the global financial crisis hit.
Mount Gibson's managing director Luke Tonkin says it is a positive outcome to have sealed the deal with Glencore.
"We've been very patient in ensuring that we get the right terms and conditions," he said.
"Glencore has been patient with us, the negotiations have been cordial and very professional but we're pleased to get this one under the belt and we'll be also pleased to announced when we've finished the others."
In other resource news, the Environmental Protection Authority has recommended a major expansion of the Jack Hills operation, north east of Meekatharra.
Crosslands Resources currently mines around 1.8 million tonnes from the site each year but it is hoping to increase that to 20 million tonnes.
sourced ABC.net
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