Perth-based Fenix Resources has signed an offtake agreement with Sinosteel Midwest, to supply 50pc of the iron ore produced from its Iron Ridge project to the latter.
Sinosteel Midwest, a subsidiary of the Chinese firm Sinosteel International Holdings, is an iron ore miner and trader operating in Western Australia.
Under the agreement, Sinosteel will purchase and trade 50pc of the iron ore produced at Iron Ridge, where early work began on Sep 21, with the first shipment expected early next year. According to estimates, the mine contains 10.5mn mt of ore, graded at 64.2pc Fe. The sale-purchases made between these two firms will be on a free-on-board (FOB) basis. The remaining 50pc of Iron Ridge’s production has been taken up by Atlas Iron.
Fenix has also agreed to purchase the Geraldton Port infrastructure from Sinosteel for $1mn to store its iron ore. The deal includes the purchase of the transport and conveyer facilities on the premises. The transaction is slated for completion in November. The facility will begin accepting truckloads of iron ore from the Iron Ridge project in December after it is recommissioned.