PERTH (miningweekly.com) – Junior Fenix Resources has struck a binding offtake agreement with Sinosteel International Holding Company for 50% of the expected production from its Iron Ridge iron-ore project, in Western Australia.
The offtake agreement will span the life of the mine, and will allow for annual review periods. Iron-ore sales will be made on a free-on-board basis, and the pricing structure will be based on monthly average Platts iron-index and will include a premium to reflect the higher iron-ore content of the concentrate.
“We are delighted to have an organisation such as Sinosteel as an offtake party, given its rich knowledge of the iron-ore market and strong networks with iron-ore users in China; the dominant importer of iron-ore and the world’s largest steel producer,” said Fenix MD Rob Brierly.
He noted that the agreement with Sinosteel now meant that 100% of the projected iron production from Iron Ridge had been accounted for in offtake agreements, after Atlas Iron subsidiary Weld Ridge Iron Ore took up a marketing election on 50% of production and sales from the project at the end of August.
“Site development at Iron Ridge has already commenced; we now have our final statutory permit after receiving our works approval, and we are making good progress in delivering on our previously stated timeframe of first iron-ore sales in early 2021,” said Brierly.
Fenix has meanwhile inked a binding term sheet for the purchase of existing port facilities currently owned by Sinosteel Midwest Corporation, at the Geraldton port, for A$1-million.
The port infrastructure includes a truck unloading facility, a storage shed with 32 000 m3 of capacity, and associated conveyor networks.
Fenix on Wednesday said that it was now working with the Midwest Ports Authority to execute a port services and ports lease agreement.