JOHANNESBURG (miningweekly.com) – Emerging iron-ore producer BC Iron has entered into a long-term offtake agreement for one-quarter of its future production at the Nullagine iron-ore project in Pilbara, the company announced on Wednesday.

Australia-based specialists metals trading firm Tennant Metals will act as the agent for the free-on-board sale of 25% of the iron-ore produced at Nullagine for five years, when production starts early next year.

The agreement with Tennant Metals represents the first third-party offtake agreement that the ASX-listed BC Iron has entered into.

BC Iron MD Mike Young described the sales agreement as a “landmark” deal, and said that things were “rapidly falling” into place for the company’s development plans.

Last month, BC Iron announced a 64% increase in high-quality direct shipping ore) resources for the Bonnie Creek channel iron deposit (CID) project at Nullagine to 46,2-million tons, grading 57% iron, within an updated global resource totalling 80,2-million tons, grading 54% iron mineralised CID.

BC Iron is currently undertaking a feasibility study on a 1,5-million tons a year start-up operation at Bonnie Creek, which is due for completion during the first half of the year.

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