Gindalbie Signs $65 Billion Iron Ore Contract
Gindalbie Metals Ltd., has agreed to sell all its production from the Karara iron ore project in Western Australia to its partner in the project, China’s Anshan Iron & Steel Group (Ansteel).
The magnetite iron ore project in the Mid-West region may produce more than 30 million tons annually for 30 years, the Perth-based company said in a statement today and the company put a value of $65 billion on total sales over the life of the mine.
"Stage one production, based on a rate of 8 million tons per annum, is scheduled to be commissioned in late 2011," the company said. "Based on the 2009 benchmark iron ore fines price and stage one production rate, the off-take agreement is worth approximately $580 million a year, increasing to more than $2.1 billion a year at the project's potential production rate."
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