PERTH (miningweekly.com) – ASX-listed emerging iron-ore producer Brockman Resources has requested a trading halt on Friday, in response to market speculation regarding its arrangements with China’s Sinosteel.

The company would restart trading once an announcement outlining the terms of its agreement with Sinosteel has been made.

In April, Brockman signed a memorandum of understanding with Sinosteel, under which China’s largest iron-ore importer would purchase up to 50% of the future production from the Marillana project, in Western Australia.

The agreement covered a maximum of ten-million tons a year, over an initial five-year period.

At the time, Brockman reported that Sinosteel would also look at a “wider strategic investment options” in the Marillana project.

Recent metallurgical test work results have confirmed that the Marillana detrital ore could be upgraded to a final product grade of between 60,5% and 61,5% iron. The final product specification was comparable with direct shipping haematite ore being mined from other significant Pilbara iron-ore projects.

The Marillana project contains a mineral resource of 1,53-billion tons.

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