PERTH (miningweekly.com) – The South Australian Magnetite Consortium has inked another sale and purchasing letter of intent (LoI), this time with Chinese steel company Sha Steel, for the acquisition of two-million tonnes a year of iron-ore concentrate for sinter feed blends.
ASX-listed Magnetite Mines chairperson Gordon Toll said on Monday that the LoI created a value-adding relationship with one of the largest, most efficient and entrepreneurial steel companies in the world.
“This LoI adds to previously announced agreements with Chinese steel companies Shandong Steel, Qingdao Steel and Ningbo Iron and Steel, plus additional agreements with two non-Chinese steelmakers. It clearly emphasises the demand for our high-quality products,” he added.
The South Australian Magnetite Consortium comprises Magnetite Mines and Lodestone Equities, which through its subsidiaries FE Mines and Olary Magnetite, holds rights to prospective tenements in South Australia.
The consortium's assets include the Mawson iron-ore project, which contains the Ironback Hill prospect, and is estimated to host more than one-billion tonnes of resource.
With the latest LoI in place, the consortium now has a total of eight-million tonnes a year of possible offtake, subject to LoI’s, ready for conversion to firm sales contracts.