Iron Ore Junior Will Use Benchmark As Reference Price
Gindalbie Metals Ltd has said that the price it sells its iron ore to its Chinese joint-venture partner, will depend on the prices achieved by the industry’s big three global miners.
Speaking to Australia’s Sky News Business Channel on Sunday, chief executive Garret Dixon said "The best thing that we can do is to use their reference price, the prices they determine, as a reference price for our project. What we do as a small guy I suppose is ride on the back of the negotiations of the big guys out in the market. That's the way we have to play it.”
Production at the company’s Karara mine will be shipped to Chinese steelmaker Ansteel commencing next year from the port of Geraldton, 250 miles north of Perth in Western Australia. The two companies signed an agreement this week that could deliver nearly 900 million tonnes of iron ore over three decades once the Karara operation in Western Australia’s Mid West iron belt is running at full capacity in full swing.
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