Deal Could Be Worth $A6 Billion
Pilbara iron ore producer Brockman Resources has signed a sales deal with China's largest iron ore importer, Sinosteel, which could be worth more than $6 billion.
Brockman announced on Tuesday that it has signed a landmark memorandum of understanding with Sinosteel Australia, for the purchase of up to 50 per cent of future production from its Marillana iron ore project in Western Australia.
"This is a key milestone because you are now dealing with one of the most credible international companies when it comes to offtake and it shows credibility to us and our project," managing director Wayne Richards said.
"To get someone like Sinosteel willing to market 50 per cent of your ore is a major benefit." Mr Richards added that talks have been taking place for 18 months.
The agreement involves the purchase of up to 10 million tonnes a year of production over an initial five-year period.
Commenting on the deal Sinosteel Australia's managing director Li Ying said: "Our company is keen to co-operate and partner with Australian companies with credible projects seeking to leverage our capability to supply raw materials for China's steel industry, whether this is iron ore, manganese, chrome ore or coal."
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